If the Money Supply Increases When There Is Much Idle

question 36

Multiple Choice

If the money supply increases when there is much idle capacity in the economy,

• A)most of the resulting rise in nominal GDP will be a result of price increases
• B)most of the resulting rise in nominal GDP will be a result of increases in real output
• C)most of the resulting rise in real GDP will be a result of increases in the price level
• D)most of the resulting rise in real GDP will be a result of increases in the interest rate
• E)only nominal GDP will change; real GDP will be unaffected

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and harmonize the law among different jurisdictions.

Acceptance

A key factor in the agreement element of a contract; consists of the agreement of one party, the offeree, to the terms of the offer in the contract made by the other party, the offeror.

Revoke

To officially cancel or withdraw an offer, privilege, or power that was previously given.

Defects

Imperfections or faults in a product, system, or process that can cause it to be unsafe, unreliable, or to fail to meet expectations.