Suppose the Central Bank Implements Expansionary Monetary Policy Where the Money

question 277

Multiple Choice

Suppose the central bank implements expansionary monetary policy where the money supply increases. Which of the following will tend to occur in the long run as a result of this monetary policy action?

• A) Output and the price level will both increase.
• B) Output will increase with no change in the price level.
• C) an increase in the price level and no change in output
• D) no change in either the price level or output

---

Definitions:

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real estate.

Third-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from it as specified by the contracting parties.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to each other.

Listed Party

An individual or entity that appears on a list due to certain criteria, often used regarding sanctions, where listed parties are restricted from certain transactions and relationships.