According to the Classical Model,an Increase in the Money Supply

question 15

Multiple Choice

According to the classical model,an increase in the money supply causes

• A)output to increase in the long run.
• B)the unemployment rate to fall in the long run.
• C)prices to rise in the long run.
• D)interest rates to fall in the long run.

---

Definitions:

Under the Influence

A state of being significantly affected by substances such as alcohol or drugs, usually impairing judgment or physical capabilities.

Alcohol

A psychoactive substance, specifically ethanol, commonly found in beverages like beer, wine, and spirits, and known for its effects on mood, behavior, and physical health.

Hurriedness

The state of doing something more quickly than usual, often under pressure.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting concern about a future event.