Over the long haul, rapid increases in the supply of money lead to
A) inflation.
B) higher levels of production and real output.
C) rapid growth of real wages.
D) lower unemployment rates
A) inflation.
You might also like to view...
When people make deposits of currency into a bank, the quantity of M1
A) changes only if the deposit is an open market operation. B) immediately decreases by the amount of the deposit. C) immediately increases by the amount of the deposit. D) does not immediately change. E) immediately changes but whether it increases or decreases depends on whether the bank had excess reserves or did not have excess reserves.
Private investment fluctuates ________, which supports those economists who advocate policy ________
A) procyclically, rules B) procyclically, activism C) countercyclically, rules D) countercyclically, activism
Microeconomics and macroeconomics use different units of analysis
Indicate whether the statement is true or false
Gross domestic product is
What will be an ideal response?