Suppose there is an increase in the money supply, but that people's demand for money balances increases by a greater amount at the same time. The net effect would be
A) lower interest rates, greater real GDP, and a higher price level as aggregate demand increases because of the indirect effect of the increase in the money supply.
B) no change in aggregate demand or aggregate supply.
C) a lower price level in the long run.
D) an increase in aggregate demand due to the increase in the money supply, but a decrease in aggregate supply due to the increase in the demand for money.
C
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In the table above, what does the private sector surplus equal?
A) $500 billion B) $350 billion C) $150 billion D) $0
If a good gives rise to substantial external benefits to society that are associated with its production and/or consumption, then the good likely has too many resources devoted to its production
a. True b. False Indicate whether the statement is true or false
The open-economy macroeconomic model examines the determination of
a. the output growth rate and the real interest rate. b. unemployment and the exchange rate. c. the output growth rate and the inflation rate. d. the trade balance and the exchange rate.
If due to inflation the real value of your savings makes you worse off than you were before, this is an example of the _____ effect
Fill in the blank(s) with the appropriate word(s).