Which One of the Following Statements Is the Most Accurate

question 104

Multiple Choice

Which one of the following statements is the most accurate?

• A) A permanent increase in the money supply cannot have any short-run effects.
• B) A permanent increase in taxes cannot have any short-run effects.
• C) A permanent decrease in the money supply cannot have short-run effects.
• D) A permanent decrease in taxes cannot have short-run effects.
• E) A permanent increase in money demand can be offset with a permanent increase in the money supply of equal magnitude.

---

Definitions:

Open-door Policy

A management approach where executives keep their doors open, encouraging open communication, feedback, and discussion among all levels of staff.

Supervisor

A person who oversees the work of others, ensuring tasks are completed effectively and efficiently while providing guidance and support.

Diagonal Communication

The transmission of messages to higher or lower organizational levels in different departments.

Organizational Levels

The hierarchical layers within an organization, structured according to authority, responsibility, and communication flow.