If resource owners anticipated a monetary growth rate of 6 percent,but the money supply actually grew at only 2 percent,
A)real wages would fall
B)output would fall
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

When the money supply grows slower than expected, it can lead to lower demand and reduced economic activity, causing output to fall.

If Resource Owners Anticipated a Monetary Growth Rate of 6