Day: November 26, 2022

According to monetarist theory, what will be the short-run effect of an unexpected increase in the money supply?

Select ONE answer:

1. an appreciation of the foreign exchange rate
2. an increase in employment
3. an increase in real wages
4. an increase in the rate of interest

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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