A. Economic growth of the country
B. Rate of unemployment
C. Labour force participation rate
D. Rate of inflation
Submitted by: Areesha Khan
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An increase in the money supply leads to higher spending, which can boost demand and cause inflation. In the long run, excessive money supply growth can lead to hyperinflation.
Related Mcqs:
- According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?
- A. The velocity of circulation decrease B. The number of transaction decrease C. There is deflation D. The velocity of circulation and the number of transactions is constant...
- When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level ?
- A. shifts money demand to the right and increases the interest rate B. None of these answers C. shifts money demand to the right and decreases the interest rate D. shifts money demand to the left and increases the interest rate E. shifts money demand to the left and decrease the interest rate...
- According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?
- A. Prices to rise and output to rise B. Price to fall and output to remain unchanged C. Prices to fall and output to fall D. prices to rise and output to remain unchanged...
- Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ?
- A. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall. B. the equilibrium quantity to rise and the equilibrium price to rise C. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous D. the equilibrium quantity to rise and the equilibrium price to...
- The quantity theory of money implies that a given percentage change in the money supply will cause ?
- A. an equal percentage change in nominal DGP. B. an equal percentage change in real GDP C. a larger percentage change in nominal GDP D. a smaller percentage change in nominal...
- Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?
- A. increase in the money demand B. decrease in the money demand C. increase in the money demand D. None of the above...
- Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?
- A. decrease in the money supply B. increase in the money supply C. decrease in the money demand D. None of the above...
- When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?
- A. None of these answers B. decrease the quantity demanded of money C. increase the quantity demanded of money D. decreases the demand for money E. increases the demand for money...
- An increase in the money supply aimed at increasing aggregate output is referred to as ?
- A. contractionary fiscal policy B. expansionary monetary policy C. contractionary monetary policy D. expansionary fiscal policy...
- In the market for real output, the initial effect of an increase in the money supply is to ?
- A. shift the aggregate supply curve to the right B. shift the aggregate supply curve to the left C. shift the aggregate demand curve to the left D. shift the aggregate demand curve to the right...
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The correct answer to the question: "Increase in supply of money will positively affect:" is "Rate of inflation".