Question

Which of the following are affected by Money Supply:

1.    Price Levels

2.    Exchange Rates

3.    Business Cycles

 4. GDP Growth

A 1 and 2 only Correct Answer Incorrect Answer
B 3 and 4 only Correct Answer Incorrect Answer
C 1, 2 and 4 only Correct Answer Incorrect Answer
D All of the above Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Money supply affects price levels, exchange rates and business cycles in the economy. It may also affect the growth of GDP.

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