A Change in the Money Supply Creates Demand and Cost

question 58

Multiple Choice

A change in the money supply creates demand and cost pressures that lead to future increases in the price level from which main sources?
I.Excess demand for output and labor
II.Inflationary expectations
III.Raw materials prices

• A) I
• B) II
• C) II and III
• D) I and II
• E) I, II, and III

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Definitions:

Frequencies

The number of occurrences of a repeating event per unit of time, often used in the context of sound waves or electromagnetic waves.

Virtual-Reality Goggles

Wearable devices that provide immersive digital experiences by simulating environments and visual perceptions.

Mannequin

A life-sized model of the human body, often used in retail to display clothes or in art for drawing reference.

Illusion

A perception that misleadingly represents reality.