A Correctly Anticipated Increase in the Quantity of Money, in an Economy

question 70

Multiple Choice

A correctly anticipated increase in the quantity of money, in an economy with an unchanging long-run aggregate supply, will result in

• A)a rise in the price level and an increase in real GDP.
• B)a rise in the price level and a decrease in real GDP.
• C)a proportional rise in the price level and no change in real GDP.
• D)no change in the price level and an increase in real GDP.
• E)no change in the price level and no change in real GDP.

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Definitions:

Efficacy Expectation

A belief about one's ability to perform behaviors that should lead to expected outcomes.

Outcome Expectation

Beliefs about the likely results of specific behaviors in given situations.

Behavior Therapy

A form of psychotherapy that focuses on changing maladaptive behaviors through conditioning and learning techniques.

Behavior Therapists

Mental health professionals who utilize principles of behaviorism to treat psychological disorders and behavioral issues through conditioning and learned behaviors.