In the View of the New Classical Economists,an Increase in the Money

question 18

Multiple Choice

In the view of the new classical economists,an increase in the money supply will affect aggregate output and employment only if the increase in money supply is

• A)anticipated.
• B)expected.
• C)unanticipated.
• D)the result of an announced open market operation.

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Definitions:

Might-Equals-Right Principle

A belief that power or strength justifies moral superiority or entitlement to leadership and decision-making.

Self-Serving Decisions

Decisions made with the primary objective of benefiting oneself, often at the expense of others or ethical standards.

Proximity

The physical closeness or distance between people, objects, or locations, often influencing communication, interaction, or relationships.

Decision Maker

A person or group responsible for making choices or judgments that influence the outcome of a situation or organization.