According to the Simple Quantity Theory of Money in the AD-AS

question 108

Multiple Choice

According to the simple quantity theory of money in the AD-AS framework,when the money supply increases,the result is __________ in Real GDP and __________ in the price level.

• A) no change; no change
• B) a rise; no change
• C) no change; a rise
• D) a rise; a fall
• E) a fall; a rise

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Definitions:

Encouragement

The action of giving someone support, confidence, or hope to motivate positive outcomes or behaviors.

Realistic Expectations

Anticipations or beliefs about future events or results that are based on practical and factual grounds, rather than on wishful thinking or idealism.

Communication

The exchange of information, thoughts, messages, or emotions between individuals or groups through spoken words, writings, behaviors, or symbols.

Family Therapy

A type of psychotherapy that involves treating a family system rather than individual members, aiming to improve communication and resolve conflicts.