In Long-Run Equilibrium After a Permanent Money-Supply Increase There Follows

question 51

Multiple Choice

In long-run equilibrium after a permanent money-supply increase there follows:

• A) an increase in exchange rate, E.
• B) a decrease in exchange rate, E.
• C) an increase in output, Y.
• D) a decrease in output, Y.
• E) an unchanged exchange rate, E.

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Definitions:

Operative

An operative is a worker, especially skilled in manual, clerical, or administrative work, often employed within the operations of a business or organization.

Punishment

Discourages a behavior by making an unpleasant consequence contingent on its occurrence.

Reward

A reward is an incentive or benefit given in recognition of someone's effort, achievement, or contribution.

Self-Control

The ability of an individual to regulate their emotions, thoughts, and behavior in face of temptations and impulses.