Increases in the money supply result in higher:
A) spending, output, and prices if the economy is at full employment.
B) spending and prices if the economy is at less than full employment.
C) spending, output, and employment if the economy is at full employment.
D) spending, output, and employment if the economy is at less than full employment.

Question

Quizplus · Accepted Answer

When the economy is at less than full employment, an increase in the money supply can lead to higher spending, output, and employment as there are idle resources that can be utilized.

Increases in the Money Supply Result in Higher