In the Short Run, an Increase in the Money Supply

question 114

Multiple Choice

In the short run, an increase in the money supply is likely to lead to

• A)lower unemployment and lower inflation.
• B)lower unemployment and higher inflation.
• C)higher unemployment and lower inflation.
• D)higher unemployment and higher inflation.

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Definitions:

Acadian Orogeny

A middle Paleozoic mountain-building event in eastern North America; occurred when a series of landmasses, referred to as Avalonia, collided with the eastern coast of North America.

Seafloor Spreading

The process by which new oceanic crust is formed as magma rises to the surface at mid-ocean ridges and solidifies, pushing older crust away from the ridge.

Accretionary Prism

A wedge-shaped mass of sediment and rock scraped off the top of a downgoing tectonic plate at a convergent plate boundary, often leading to the formation of new land.

Volcanic Mountain Belt

A region typically found at convergent plate boundaries, characterized by a series of volcanoes formed from the melting of subducted lithosphere.