In the Keynesian Model in the Long Run,an Increase in the Money

question 74

Multiple Choice

In the Keynesian model in the long run,an increase in the money supply will

• A)raise the price level but not the level of output.
• B)raise the level of output but not the price level.
• C)raise both the level of output and the price level.
• D)raise neither the level of output nor the price level.

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Definitions:

Direct Method

A way of reporting cash flows from operating activities by listing major classes of gross cash receipts and payments.

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for items that affected reported net income but didn't involve actual cash flows.

Operating Activities

Activities directly related to the day-to-day business operations, including cash flows from selling products or providing services.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, often with fixed dividends.