In the Long Run, an Increase in the Quantity of Money

question 55

Multiple Choice

In the long run, an increase in the quantity of money ________ the value of money and ________ the price level.

• A) raises; raises
• B) raises; does not change
• C) lowers; lowers
• D) lowers; does not change
• E) lowers; raises

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Definitions:

Capital Investment

The funds spent by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Land Reform

The process of redistributing land, typically from those with large holdings to those with none or less, with the intent of improving equality and agricultural productivity.

Governments

The organizational bodies that govern a community or nation, setting and administering public policy and exercising executive, political, and sovereign power.

Surplus Agricultural Labor

A condition in agricultural economies where there are more laborers available than are needed to cultivate the land, often leading to unemployment or underemployment in rural areas.