Suppose the Money Supply Increases When There Is Much Idle

question 9

Multiple Choice

Suppose the money supply increases when there is much idle capacity in the economy.Which of the following will be the major contributor to the consequent rise in nominal GDP?  

• A) increases in velocity 
• B) increases in real output 
• C) increases in the price level 
• D) increases in the interest rate

---

Definitions:

Types Of Questions

Categories that define the nature or form of inquiries, such as open-ended, closed-ended, rhetorical, or leading questions.

Adversity

Difficult or challenging circumstances that a person encounters, which often require resilience or determination to overcome.

Peak Performer

An individual who consistently operates at their maximum potential, achieving high levels of productivity and success.

Grammatical Structure

The arrangement of words and phrases to create well-formed sentences in a language.