Multiple Choice
The most likely impact of an unanticipated increase in the money supply is
A) an increase in the real interest rate, which in turn stimulates investment and GDP.
B) a decrease in the real interest rate, which in turn stimulates investment and GDP.
C) a reduction in the general level of prices, which will increase the disposable income of households.
D) an improvement in technology, which will stimulate both output and employment.
Correct Answer:
Verified
Correct Answer:
Verified
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