Compared with a Closed Economy,an Increase in the Growth Rate

question 7

Multiple Choice

Compared with a closed economy,an increase in the growth rate of the money supply in an open economy increases aggregate demand by a:

• A) larger amount only in the short run.
• B) smaller amount only in the short run.
• C) larger amount in both the short run and the long run.
• D) smaller amount in both the short run and the long run.

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Definitions:

U.S. Government

The federal government of the United States, composed of three branches: legislative, executive, and judicial, established to govern the country as outlined in the U.S. Constitution.

Grand Alliance

The coalition of nations, including the United Kingdom, Soviet Union, and United States, that allied to oppose the Axis powers during World War II.

Germany

A country in Central Europe known for its rich history, contributions to art, science, and philosophy, and its pivotal roles in both World War I and World War II.

Russia

The largest country in the world by area, spanning Eastern Europe and northern Asia, known for its rich history, cultural heritage, and as a major global political power.