In the Long Run,what Is the Most Likely Effect of a Sustained

question 8

Multiple Choice

In the long run,what is the most likely effect of a sustained increase in money supply growth relative to the growth rate of potential real output?

• A)It will cause the real interest rate to fall.
• B)It will cause the nominal interest rate to fall.
• C)It will reduce the natural rate of unemployment.
• D)It will increase the price level.

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Definitions:

Individuality

Consists of two dimensions: self-assertion, the ability to have and communicate a point of view; and separateness, the use of communication patterns to express how one is different from others.

Self-assertion

The action of confidently and forcefully expressing one's opinions, needs, and rights without infringing on the rights of others.

Separateness

The state or condition of being distinct, separate, or not connected.

Mutuality

The quality or condition of reciprocal agreement or support within a relationship.