Multiple Choice
Suppose the real interest rate is 4% and the expected inflation rate is 3%.If the money supply increases by 10% and output,the real interest rate,and the expected inflation rate are unchanged,then the price level increases by
A) 3%.
B) 4%.
C) 7%.
D) 10%.
Correct Answer:
Verified
Correct Answer:
Verified
Q27: Suppose real money demand is L =
Q28: M1 does not include<br>A)MMMFs.<br>B)travelers' checks.<br>C)currency.<br>D)transaction accounts.
Q29: Money demand is given by M<sup>d</sup>/P =
Q30: What happens to M1 and M2 due
Q31: Mr.Pierpont has wealth of $200,000.He wants to
Q33: Money demand is given by M<sup>d</sup>/P =
Q34: Suppose your bank raises its minimum-balance requirement
Q35: Compared with money,bonds have<br>A)less risk and less
Q36: If the nominal money supply grows 10%,the
Q37: If the asset market is to remain