Classical economist David Hume observed that as the money supply expanded after gold discoveries
A)prices and output both increased immediately.
B)prices increased immediately while output remained unchanged.
C)it took time for prices to rise;in the meantime output was lower.
D)it took time for prices to rise;in the meantime output was higher.

Question

Quizplus · Accepted Answer

Hume noted that an increase in money supply initially boosts economic activity and output before prices adjust and rise.

Classical Economist David Hume Observed That as the Money Supply