In the long run, if the money supply increases:
a. most of the resulting rise in nominal GDP will be a result of increases in the exchange rate.
b. most of the resulting rise in nominal GDP will be a result of increases in the price level.
c. most of the resulting rise in real GDP will be a result of increases in the price level
d. most of the resulting rise in real GDP will be a result of increases in the interest rate.
e. most of the resulting rise in real GDP will be a result of increases in aggregate expenditure.
b
You might also like to view...
A supply restriction on imported goods, such as the government's restriction of imported oil for many years, is referred to as
A) an export quota. B) an import quota. C) a price floor. D) a price ceiling.
A firm sells 100 . units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . The firm should
a. Shut-down as the firm is making a loss of $10,00 . per week b. Shut-down as the firm cannot cover the fixed costs c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs