Multiple Choice
Suppose the Federal Reserve implements expansionary monetary policy where the money supply increases. Which of the following will tend to occur in the long run as a result of this monetary policy action?
A) Output and the price level will both increase.
B) Output will increase with no change in the price level.
C) An increase in the price level and no change in output.
D) No change in either the price level or output.
Correct Answer:
Verified
Correct Answer:
Verified
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