Which One of the Following Statements Is the Most Accurate

question 6

Multiple Choice

Which one of the following statements is the most accurate?

• A) A decrease in the money supply lowers the interest rate while an increase in the money supply raises the interest rate, given the price level and output.
• B) An increase in the money supply lowers the interest rate while a fall in the money supply raises the interest rate, given the price level.
• C) An increase in the money supply lowers the interest rate while a fall in the money supply raises the interest rate, given the output level.
• D) An increase in the money supply lowers the interest rate while a fall in the money supply raises the interest rate, given the price level and output.
• E) An increase in the money supply does not usually affect the interest rate.

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Definitions:

Strike

A work stoppage caused by the mass refusal of employees to work, usually in protest against employment terms, working conditions, or other aspects of their contracts.