In the Long Run,an Increase in the Stock of Human

question 37

Multiple Choice

In the long run,an increase in the stock of human capital

• A)and increases in the money supply both make the price level rise.
• B)and increases in the money supply both make the price level fall.
• C)makes the price level rise,while increases in the money supply make prices fall.
• D)makes the price level fall,while increases in the money supply make prices rise.

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Definitions:

Loanable Funds

Describes the market where savers provide funds to borrowers, influencing interest rates through supply and demand.

Usury Law

Usury laws are regulations governing the interest rates that can be charged on loans, designed to protect consumers from exorbitant rates and predatory lending practices.

Loanable Funds

The market where savers supply funds for loans to borrowers, influenced by interest rates and government policies.

Shortage

A situation where the demand for a product or service exceeds its supply in a market.