Holding all else constant,in the short run,an increase in the money supply can cause:
A) an increase in unemployment.
B) a lower rate of inflation.
C) a decrease in the price level.
D) a decrease in real gross domestic product (GDP).
E) an increase in real GDP.

Question

Quizplus · Accepted Answer

In the short run, an increase in the money supply can lead to an increase in investment and consumption, thus increasing aggregate demand and causing an increase in real GDP.

Holding All Else Constant,in the Short Run,an Increase in the Money