Which of the Following Would Cause Prices and Real GDP

question 64

Multiple Choice

Which of the following would cause prices and real GDP to rise in the short run?

• A)an increase in the expected price level
• B)an increase in the money supply
• C)a decrease in the capital stock
• D)an import tariff

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Definitions:

Finance Companies

Businesses that provide loans to individuals or corporations, excluding banks and other traditional financial institutions.

Debentures

A type of debt instrument not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.

Warrants

Warrants are legal documents issued by a governmental authority allowing law enforcement to carry out certain actions such as searches or arrests.

Section 16(b)

A provision under the Securities Exchange Act of 1934 that seeks to prevent insider trading by requiring profits gained from short-swing transactions by corporate insiders to be returned to the corporation.