Which of the Following Is True

question 20

Multiple Choice

Which of the following is true?
I. The quantity theory predicts that in the long run the inflation rate equals the money growth rate minus the growth rate of potential GDP.
II. If the Fed decreases the federal funds rate,aggregate demand increases.
III. The Fed's monetary policy works by shifting the short-run aggregate supply curve.

• A) I and II
• B) II and III
• C) I and III
• D) I, II and III

---

Definitions:

Nasal Corticosteroids

Medications used to treat and relieve nasal symptoms of allergies by reducing inflammation.

Respiratory Irritation

An uncomfortable condition of the respiratory tract that can cause symptoms such as coughing or shortness of breath, often due to environmental factors like pollutants.

Cromolyn Sodium

A medication used to treat symptoms of allergies, such as nasal congestion and asthma, by preventing the release of substances that cause inflammation.

Lose Weight

The process of reducing body mass, typically through diet, exercise, or a combination of both.