In the Short Run, an Unanticipated Increase in the Money

question 13

Multiple Choice

In the short run, an unanticipated increase in the money supply will exert its primary impact on

• A) output and employment rather than on prices.
• B) prices; output and employment will be largely unaffected.
• C) interest rates; rising interest rates will stimulate additional saving.
• D) prices, if the economy operates at an output level below its long-run supply constraint.

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Definitions:

Mail Fraud

A criminal act involving the use of postal or electronic mail services to carry out schemes devised to defraud or obtain money or property under false pretenses.

False Pretenses

A legal term referring to the act of deliberately misrepresenting facts to unlawfully gain money, property, or services from another.

Medicare

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger individuals with disabilities.

Federal Constitutional Rights

Rights granted to citizens by the U.S. Constitution that are protected from governmental infringement.