Multiple Choice
If wages and prices are flexible and expectations are formed rationally, an increase in the money supply will cause
A) real wages to rise.
B) real wages to fall.
C) nominal wages to rise.
D) nominal wages to fall.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Adaptive inflationary expectations are based on<br>A) monetary
Q7: If wages instantaneously adjust to reflect expected
Q8: If the consensus in securities markets is
Q9: Contractual inflexibility is most likely to slow
Q10: Which of the following would be included
Q12: Suppose that for several periods the aggregate
Q13: An effective way to restore credibility to
Q14: Suppose that for several periods the aggregate
Q15: If interest rates have been increasing, adaptive
Q16: Real wages will decline if<br>A) money supply