WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
GILDED AGE POLITICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase in prices and a decline in wages.
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increase in the value of the dollar along with decrease in purchasing power
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increase in interest rates and a decline in prices.
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decrease the value of the dollar and increase in prices
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Detailed explanation-1: -Money supply and interest rates have an inverse relationship. A larger money supply lowers market interest rates, making it less expensive for consumers to borrow. Conversely, smaller money supplies tend to raise market interest rates, making it pricier for consumers to take out a loan.
Detailed explanation-2: -The Bottom Line When the Federal Reserve increases the money supply, inflation may occur. More often than not, if the Fed is attempting to stimulate the economy by growing the money supply, prices will increase, the cost of goods will be unstable, and inflation will likely occur. Correction: Sep.
Detailed explanation-3: -An increase in the money supply lowers the interest rate for a given price level and output A decrease in the money supply raises the interest rate for a given price level and output. An increase in national income increases the equilibrium interest rate for a given price level.