Multiple Choice
The liquidity effect is the
A) decrease in the interest rate due to an increase in the supply of loanable funds.
B) increase in the interest rate due to an increase in national income.
C) increase in the interest rate due to a higher expected inflation rate.
D) increase in the interest rate due to an increase in the price level.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: Continued inflation occurs<br>A) if there is a
Q27: Changes in the money supply can affect<br>A)
Q28: The California gold rush resulted in an
Q29: If Real GDP is $900,the money supply
Q30: Describe the difference between the simple quantity
Q32: A change in the money supply or
Q33: One-shot inflation can result from an increase
Q34: According to Milton Friedman,continued inflation is always
Q35: If the money supply is $20,000,velocity is
Q36: If the money supply is $3,000,velocity is