In the short run,which of the following rates of growth in the money supply is likely to lead to the highest level of unemployment in the economy?
A)1 percent per year
B)2 percent per year
C)3 percent per year
D)4 percent per year

Question

Quizplus · Accepted Answer

In the short run, a lower growth rate in the money supply, such as 1 percent per year, is likely to lead to higher unemployment due to reduced economic activity and spending.

In the Short Run,which of the Following Rates of Growth