Solved

If the Money Supply Increases When There Is Much Idle

Question 36

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions