Holding All Else Constant,in the Short Run,an Increase in the Money

question 11

Multiple Choice

Holding all else constant,in the short run,an increase in the money supply can cause a(n) :

• A) increase in unemployment.
• B) lower rate of inflation.
• C) decrease in the price level.
• D) decrease in real gross domestic product (GDP).
• E) increase in real GDP.

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Definitions:

Accounts Receivable Period

The average number of days it takes for a company to collect payments owed by its customers.

Cash Expenses

Expenses that require an immediate outlay of cash during a given time period.

Beginning Cash Balance

The amount of cash a company has at the start of a new financial period, carried over from the end of the previous period.

Cost of Goods Sold

The expenses incurred that are directly related to the manufacturing of products a company sells, including labor and materials.