Suppose the Fed Permanently Increases the Money Supply by a Given

question 300

Multiple Choice

Suppose the Fed permanently increases the money supply by a given amount. Which of the following is (are) most likely to occur in the long run as a result of this monetary policy action?

• A)an increase in employment
• B)a reduction in the real interest rate
• C)a decrease in unemployment
• D)all of the above
• E)none of the above

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Definitions:

Listening Style

Preferred way of making sense out of spoken messages.

Relational-Oriented

Focused on or concerned with developing and maintaining positive relationships with others.

Listening Style

The habitual pattern or preference an individual has when receiving and processing auditory information.

Emotions

Complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.