Multiple Choice
If the money supply increases when there is much idle capacity in the economy,
A) most of the resulting rise in nominal GDP will be a result of price increases
B) most of the resulting rise in nominal GDP will be a result of increases in real output
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) only nominal GDP will change; real GDP will be unaffected
Correct Answer:

Verified
Correct Answer:
Verified
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