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If the Economy Is at Potential Output and the Fed

question 136

Multiple Choice

If the economy is at potential output and the Fed increases the money supply, in the LONG run the price level will likely:


Definitions:

Endomysium

The thin layer of connective tissue that wraps each individual muscle fiber, aiding in the transmission of force and nourishment of the cell.

Excitability

The ability of a cell or tissue to respond to a stimulus, particularly noticed in nerve and muscle cells.

Extensibility

The capability of muscle tissue to be stretched or extended without being damaged.

Contractility

The capability of muscle tissue to contract or shorten, generating force and movement.

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