Multiple Choice
In a world of rational expectations,
A) an unanticipated increase in money supply leads immediately to lower nominal interest rates.
B) an unanticipated increase in money supply leads immediately to higher nominal interest rates.
C) an anticipated increase in money supply leads immediately to lower nominal interest rates.
D) an anticipated decrease in money supply leads immediately to higher nominal interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: An unannounced increase in the money supply
Q3: Real wages will rise if<br>A) money supply
Q4: If wages and prices are flexible, an
Q5: If wages do not instantaneously adjust to
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
Q11: If wages and prices are flexible and