Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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