If the Federal Reserve Increases the Growth Rate of the Money

question 135

Multiple Choice

If the Federal Reserve increases the growth rate of the money supply,in the long run

• A)inflation is higher and the unemployment rate is lower.
• B)inflation is higher while the unemployment rate is unchanged.
• C)inflation is unchanged while the unemployment rate is lower.
• D)None of the above is correct.

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Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise.

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