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If Resource Owners Anticipated a Monetary Growth Rate of 6

Question 178

Multiple Choice

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


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

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