The Country of Zamula Is Currently Experiencing Conditions of Full

Multiple Choice

The country of Zamula is currently experiencing conditions of full employment and capacity output. Which of the following is incorrect?

A) Increases in the money supply by the central bank of Zamula become more and more likely to generate rising prices.
B) Real economic growth in Zamula is likely to increase.
C) Inflation will result in Zamula if the increase in the money supply is exactly large enough to provide funds for the enlarged volume of transactions.
D) All of the above are true.