According to the Classical Dichotomy, Which of the Following Increases

question 1

Multiple Choice

According to the classical dichotomy, which of the following increases when the money supply increases?

• A)the real interest rate
• B)real GDP
• C)the real wage
• D)None of the above increases.

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Definitions:

Liabilities

Financial obligations or debts that a company or individual owes, which must be settled over time.

Balance Sheet

A statement presenting a company’s financial standing, including details on assets, liabilities, and equity held by shareholders, at a particular point in time.

Total Assets

Total assets represent the sum of all resources owned by a company, valued in monetary terms, and listed on its balance sheet, including both current and non-current assets.

Liabilities

Financial obligations that a company owes to outside parties, including loans, accounts payable, mortgages, and other debts.