In the Short Run, an Increase in the Money Supply

question 89

Short Answer

In the short run, an increase in the money supply is likely to lead to ______ inflation and ______ unemployment.

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Definitions:

Earnings Potential

The maximum amount of money an individual, asset, or company could potentially earn.

Slope

In mathematics, it refers to the measure of the steepness, incline, or grade of a straight line, quantitatively describing the change in the vertical direction for a unit change in the horizontal direction.

Stock Return

The gain or loss on a stock investment, usually expressed as a percentage of the investment's initial cost.

Market Return

The total return on investment in the stock market, considering both capital gains and dividends.