In the Short Run, Which of the Following Is the Most

question 186

Multiple Choice

In the short run, which of the following is the most likely effect of an unanticipated move to expansionary monetary policy?

• A) an increase in real output
• B) a decrease in real output
• C) an improvement in technology, which will stimulate growth in the long run
• D) an increase in prices proportional to the increase in the money supply

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving the holder a share in the company's profits through dividends and/or capital appreciation.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Note Payable

A written promise to pay a specific sum of money, usually with interest, on a certain date or dates to the holder of the note.