When the Money Supply Is Expanding and Prices Rise Rapidly

Multiple Choice

When the money supply is expanding and prices rise rapidly, economic growth

A) is slowed by the resulting unpredictability of the future level of prices.
B) is enhanced as economic activity grows more rapidly.
C) is enhanced because profits are higher so that capital investment is greater.
D) is enhanced because existing debt is reduced in value, so people are willing to buy more goods.