Exam 30: Money Growth and Inflation

The idea that nominal variables are heavily influenced by the quantity of money and that money is largely irrelevant for understanding the determinants of real variables is called the

When the money market is drawn with the value of money on the vertical axis,the price level increases if

Which of the following inflation costs matter even if actual inflation and expected inflation are the same?

If the nominal interest rate is 5 percent and there is a deflation rate of 2 percent,what is the real interest rate?

People go to the bank more frequently to reduce currency holdings when inflation is high,the cost of their time to do this would be counted as

For a given real interest rate,an increase in inflation makes the after-tax real interest rate

Sally purchased one share of Stryker stock for $200 in year 1 and sold that share in year 2 for $400.The inflation rate between year 1 and year 2 was 50%.The tax on nominal capital gains is 50%.What was the tax on Sally's capital gain?

Under the assumptions of the Fisher effect and monetary neutrality,if the money supply growth rate rises,then

According to the quantity equation,if P = 2,Y = 6,000,and M= 3,000,then V =

Why did farmers in the late 1800s dislike deflation?

Menu costs refers to

There was hyperinflation

Suppose that monetary neutrality and the Fisher effect both hold.An increase in the money supply growth rate raises.

If the economy unexpectedly went from inflation to deflation,

According to the classical dichotomy,which of the following is influenced by monetary factors?

Use the figure below for the following questions. Figure 30-1 -Refer to Figure 30-1.If the money supply is MS₂ and the value of money is 2,

According to the classical dichotomy,which of the following increases when the money supply increases?

Inflation distorts savings when the nominal rather than the real interest rate is taxed.

Suppose the Fed sells government bonds.Use a graph of the money market to show what this does to the value of money.

Suppose that the money supply tripled,but at the same time velocity fell by half and real GDP was unchanged.According to the quantity equation the price level