Multiple Choice
If the price level doubles,
A) the quantity demanded of money falls by half.
B) the value of money is cut by half.
C) nominal income is unaffected.
D) None of these answers.
E) the money supply has halved.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q2: If actual inflation turns out to be
Q3: If money is neutral,<br>A)an increase in the
Q9: If a government supplies more money than
Q10: In the long run, inflation is caused
Q15: Suppose a central bank sells government bonds.
Q21: If the price level were to double,
Q47: The shoeleather costs of inflation should be
Q48: If the nominal interest rate is 6
Q153: Economists agree that increases in the money-supply
Q180: Wages and prices are many times higher