If There Is a Permanent Increase of 8% in the Domestic

question 86

Multiple Choice

If there is a permanent increase of 8% in the domestic money supply, then which of the following will be true in the long run?

• A) Prices will decrease by 8%.
• B) Prices will increase by 4%.
• C) The home country currency will depreciate by 8%.
• D) The home country currency will appreciate by 4%.

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Definitions:

Folic Acid

A B-vitamin essential for red blood cell formation and for healthy cell growth and function.

Vitamin B12

An essential nutrient that helps keep the body's nerve and blood cells healthy and helps make DNA, the genetic material in all cells; also known as cobalamin.

Synthesized

Created or assembled from simpler components, typically referring to the production of substances by chemical or biological processes.

Primitive Gases

Naturally occurring gases, such as hydrogen and helium, believed to have been present in the earliest stages of the earth’s atmosphere.