Question

Which of the following can a country increase in the long run by increasing its money growth rate?

Select one:

a.

the nominal wage divided by the price level

b.

real output

c.

real interest rates

d. None of the above is correct.

Answer 1

Answer D None of the above.

In the short term an increase in the money growth rate will increase output. But, in the long term all that can be observed is that it increases the inflation of the economy

(Please connsider giving an upvote if you find it useful)