An Increase in the Quantity of Money Leads to

question 19

Multiple Choice

An increase in the quantity of money leads to

• A)an increase in short-run aggregate supply.
• B)a decrease in net exports.
• C)a decrease in real GDP.
• D)a decrease in the price level.
• E)an increase in aggregate demand.

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Definitions:

Behavioral Economics

An area within economics analyzing how various psychological, emotional, cognitive, cultural, and social elements affect the decision-making processes in economics of both individuals and organizations.

Net Change

The difference in an entity's value between two points in time, commonly used in reference to stock prices or financial performance.

Utility

The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.