If When the Money Supply Changes,real Output and Velocity Do

question 71

Multiple Choice

If when the money supply changes,real output and velocity do not change,then a 2 percent increase in the money supply

• A)decreases the price level by 2 percent.
• B)decreases the price level by less than 2 percent.
• C)increases the price level by less than 2 percent.
• D)increases the price level by 2 percent.

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Definitions:

Ego

Ego, in Freudian psychology, is the component of the personality that is conscious, regulates behavior, and mediates between individual desires and the demands of reality.

Impulse

A sudden, involuntary urge to perform an action, often without premeditation.

Pleasure Principle

A psychoanalytic concept that suggests the driving force of behavior is the desire to maximize pleasure and avoid pain, guiding the id aspect of personality.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.