If the Bank of Japan Permanently Increases Its Money Supply

question 54

Multiple Choice

If the Bank of Japan permanently increases its money supply, then which of the following is most likely to take place in the short run?

• A) Japanese prices will immediately decrease.
• B) Japanese prices will immediately increase.
• C) Japanese interest rates will increase.
• D) Japanese interest rates will decrease.

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Definitions:

Anti-Assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties to another party without the original party's consent.

Obligee

The party in a contract or agreement who is entitled to receive a benefit or performance from the other party, known as the obligor.

Delegatee

An individual or party to whom a task, duty, or responsibility has been delegated or transferred.

Personal Services

Services provided to individuals that may include care, advice, or professional work, typically requiring personal skills or effort.