Other Things Being Equal, an Increase in the Supply of Money

question 187

Multiple Choice

Other things being equal, an increase in the supply of money

• A) reduces the amount of money balances.
• B) increases the price level.
• C) reduces aggregate demand.
• D) generates significant changes in relative prices.

---

Definitions:

Factors Of Production

The resources used in the creation of goods and services, including land, labor, capital, and entrepreneurship.

Inputs

The resources (such as labor, raw materials, and capital) used in the production process to create goods or services.

Resources

Assets, materials, and inputs used to produce goods and services.

Input Market

The market where resources or inputs such as labor, materials, and capital are bought and sold, allowing businesses to produce goods and services.