If the Fed Increases the Quantity of Money,________ Economists Believe

question 13

Multiple Choice

If the Fed increases the quantity of money,________ economists believe that the ________.

• A) Keynesian; aggregate supply curve shifts rightward
• B) Keynesian; structural deficit increases
• C) monetarist; cyclical deficit increases
• D) monetarist; aggregate demand curve shifts rightward

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Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Payments

Regular amounts of money paid by one party to another, often in exchange for goods, services, or to fulfill a legal obligation.

Ordinary Annuity

Harmony of equal contributions at the end of each cycle for a particular duration.

Expressed

Clearly stated, articulated, or otherwise made known in explicit terms.