The "Direct Effect" of an Increase in the Money Supply

question 99

Multiple Choice

The "direct effect" of an increase in the money supply is to

• A) increase aggregate demand as people spend their excess money balances.
• B) increase aggregate demand as interest rates fall and investment spending increases.
• C) increase aggregate supply as producers anticipate higher future profits.
• D) decrease the rate of inflation.

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Definitions:

IQ

An abbreviation for Intelligence Quotient, a score derived from standardized tests designed to assess human intelligence.

Interpersonal Intelligence

The ability to understand and interact effectively with others, involving skills such as empathy and communication.

Gardner

Likely refers to Howard Gardner, a psychologist known for his theory of multiple intelligences, which suggests that intelligence is multifaceted and not solely measured by traditional IQ.

Independent Types

Independent types in programming or data structuring are entities defined without inheriting properties from other types, designed to operate without reliance on external structures.