When prices rise, the purchasing power of money

A) rises.
B) falls.
C) is unaffected.
D) may rise, fall, or be unaffected depending upon circumstances.


B

Economics

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If the central bank increases the money supply at the same time as government spending increases, then:

a. interest rates must increase. b. interest rates must decrease. c. income must increase. d. income must decrease.

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An increase in the money supply will:

a. decrease both investment spending and aggregate demand. b. decrease investment spending and increase aggregate demand. c. decrease both consumption spending and aggregate demand. d. increase both investment spending and aggregate demand. e. increase investment spending and decrease aggregate demand

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The Clayton Act

a. preceded the Sherman Act. b. replaced the Sherman Act. c. strengthened the Sherman Act. d. was specifically designed to reduce the ability of cartels to organize.

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