If Resource Owners Anticipated a Monetary Growth Rate of 6

Multiple Choice

If resource owners anticipated a monetary growth rate of 6 percent, but the money supply actually grew at only 2 percent, then _____

A) real wages would fall.
B) output would decrease.
C) output would remain unchanged.
D) output would increase, but only if nominal wages increased more rapidly than prices.
E) the expected inflation rate was less than the actual rate.