Exam 12: Money Growth and Inflation

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

Which of the following statements concerning the history of U.S. inflation is not correct?

Tara deposits money into an account with a nominal interest rate of 6 percent. She expects inflation to be 2 percent. Her tax rate is 20 percent. Tara's after-tax real rate of interest

Even though monetary policy is neutral in the short run, it may have profound real effects in the long run.

Figure 12-1 -Refer to Figure 12-1. If the money supply is MS₂ and the value of money is 2, then there is an excess

If the real interest rate is 5% and the inflation rate is 3%, then the nominal interest rate is 8%.

Over the last 70 years, the average annual U.S. inflation rate was about

The United States has never had deflation.

The nominal interest rate is 5 percent and the real interest rate is 2 percent. What is the inflation rate?

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

In early 2008, the central bank of Zimbabwe announced the inflation rate in that country had reached

Banks advertise

Nominal GDP measures output of final goods and services in physical terms.

To explain the long-run determinants of the price level and the inflation rate, most economists today rely on the

Assuming the Fisher Effect holds, and given U.S. tax laws, an increase in inflation

Which of the following combinations of real interest rates and inflation implies a nominal interest rate of 7 percent?

Over the past 70 years, the overall price level in the U.S. has experienced a(n)

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

Inflation can be measured by the

If people had been expecting prices to rise but in fact prices fell, then who among the following would benefit?