If resource owners anticipated a monetary growth rate of 6 percent,but the money supply actually grew at only 2 percent,then:
A)real wages would fall.
B)output would decrease.
C)output would increase.
D)output would increase,but only if nominal wages were increased more rapidly than prices.
E)the expected inflation rate was less than the actual rate.

Question

Quizplus · Accepted Answer

If the money supply grows at a slower rate than anticipated, it can lead to lower than expected inflation, which may reduce aggregate demand and thus decrease output.

If Resource Owners Anticipated a Monetary Growth Rate of 6