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

Suppose the money market,drawn with the value of money on the vertical axis,is in equilibrium.If the money supply increases,then at the old value of money there is an

With the value of money on the vertical axis,the money supply curve is

When the money market is drawn with the value of money on the vertical axis,if the money supply rises

The data on hyperinflation show a clear link between the quantity of money and

Most economists believe that monetary neutrality provides

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

If the number of dollars needed to buy a representative basket of goods falls,the price level

When there is inflation,the number of dollars needed to buy a representative basket of goods

If the nominal interest rate is 4 percent and expected inflation is 2.5 percent,then what is the expected real interest rate?

Figure 30-1 -Refer to Figure 30-1.When the money supply curve shifts from MS₁ to MS₂,

According to the classical dichotomy,which of the following is not influenced by monetary factors?

The value of money falls.This might be because the Federal Reserve

Suppose each good costs $5 per unit and Megan holds $40.What is the real value of the money she holds?

In which case below does a person's purchasing power from saving increase the most?

Suppose that M is fixed but that P falls.According to the quantity equation which of the following could both by themselves explain the decrease in P?

When the Consumer Price Index increases from 100 to 120

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

Nominal GDP measures

When the money supply and the price level in countries that experienced hyperinflation are plotted on a graph against time,we see that

Based on the quantity equation,if Y = 3,000,P = 3,and V = 4,then M =