In the Short Run,a Permanent Increase in the Domestic Money

question 113

Multiple Choice

In the short run,a permanent increase in the domestic money supply

• A)has stronger effects on the exchange rate and output than an equal temporary increase.
• B)has stronger effects only on the exchange rate but not on output than an equal temporary increase.
• C)has weaker effects on the exchange rate and output than an equal temporary increase.
• D)has stronger effects on output,but lower effect the exchange rate than an equal temporary increase.
• E)has weaker effects only on the exchange rate than an equal temporary increase.

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Definitions:

Linear Association

A relationship between two variables that can be represented on a graph as a straight line, indicating a consistent rate of change.

Moderately Strong Association

A statistical term indicating a reasonably strong relationship between two variables, showing noticeable correlation but not absolute prediction.

Little or No Association

A term used in statistics to describe a situation where there is very weak or no relationship between two variables being studied.

Very Strong Association

A term in statistics indicating a high level of correlation between two variables.