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    • 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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