If Real Money Demand Doubles While the Nominal Money Supply

question 96

Multiple Choice

If real money demand doubles while the nominal money supply is unchanged,what happens to the price level?

• A)The price level increases by a factor of four.
• B)The price level doubles.
• C)The price level is unchanged.
• D)The price level falls by one-half.

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Definitions:

RC Parallel Circuit

A circuit configuration consisting of a resistor (R) and a capacitor (C) connected in parallel, which influences the charging and discharging time constants.

R

Symbol commonly representing resistance in electrical equations, measured in ohms (Ω).

RC Parallel Circuit

An electrical circuit that consists of resistors (R) and capacitors (C) connected alongside each other in parallel, allowing for AC filtering or timed circuits.

R

In electrical engineering, "R" typically refers to resistance, which is a measure of the opposition to the flow of electric current.