An Increase in the Money Supply Will Affect Aggregate Demand

question 114

Multiple Choice

An increase in the money supply will affect aggregate demand

• A) only if the increase in the money supply causes interest rates to rise.
• B) only if the increase in the money supply causes people to buy less goods and services.
• C) only if the increase in the money supply causes people to increase their saving.
• D) if the increase in the money supply causes interest rates to fall and/or causes people to buy more goods and services.

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Definitions:

Organizational Change

The process through which companies undergo transformation, involving changes in strategy, structure, processes, or culture.

Organizational Learning

An approach to learning that applies double-loop learning and an attempt to understand how the entire system may be affected by change. Organizational learning allows knowledge from any individual in the organization to become incorporated into the firm's culture and processes.

Personal Mastery

The understanding of one's purpose and the development of a personal vision.

Mental Models

Internal representations of the external reality that people use to understand and interact with the world around them.