During a period of expansionary monetary policy
A) the price level is increased, which leads to an increase in the money supply.
B) the price level is decreased, which leads to a decrease in the money supply.
C) the rate of growth of the money supply is increased, leading to an increase in the price level.
D) the rate of growth of the money supply is reduced, leading to a decrease in the price level.
C
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An internal economies of scale is defined as
A) one whose size or scale effects are not located in the firm, but in the industry. B) one with falling costs over a specific level of output. C) one with falling costs over a relatively large range of output. D) one with falling costs over a relatively large range of output, but definite declining profits.
One of the major drawbacks associated with parity pricing is that it
a. creates underproduction of food goods b. doesn't apply to consumption by cattle and hogs of feed corn c. causes many farmers to go out of business d. stifles the adoption of new technology e. helps the rich farmers more than the poor ones