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

As the Consumer Price Index increases,the value of money

In the U.S. ,from the early 1980s through the early 1990s,

Suppose there is a surplus in the money market.

The supply of money is determined by

Printing money to finance government expenditures

The classical dichotomy refers to the idea that the supply of money

When the money market is drawn with the value of money on the vertical axis,an increase in the money supply creates an excess

Economic variables whose values are measured in monetary units are called

If M = 9,000,P = 6,and Y = 1,500,what is velocity?

According to the quantity theory of money,a 3 percent increase in the money supply

If the value of a dollar falls,then the quantity of money demanded

Monetary neutrality implies that an increase in the quantity of money will

The inflation tax falls mostly heavily on

When the Consumer Price Index falls from 110 to 100

Walter puts money in a savings account at his bank earning 3.5 percent.One year later he takes his money out and notes that while his money was earning interest,prices rose 1.5 percent.Walter earned a nominal interest rate of

The inflation tax

The supply of money increases when

The evidence from hyperinflations indicates that money growth and inflation

According to the assumptions of the quantity theory of money,if the money supply increases 5 percent,then

The claim that increases in the growth rate of the money supply increase nominal interest rates but not real interest rates is known as the