Exam 17: Money Growth and Inflation: The Classical Theory of Inflation

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Based on past experience,if a country is experiencing hyperinflation,then which of the following would be a reasonable guess?

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In which case below is the real interest rate the highest?

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

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

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Figure 30-3.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes. Figure 30-3.On the graph,MS represents the money supply and MD represents money demand.The usual quantities are measured along the axes.   -Refer to Figure 30-3.If the relevant money-supply curve is the one labeled MS<sub>1</sub>,then the equilibrium price level is -Refer to Figure 30-3.If the relevant money-supply curve is the one labeled MS1,then the equilibrium price level is

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