With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would
A) decrease.
B) increase.
C) not change.
D) decrease or increase depending on economic conditions.
Answer: C
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Hyperinflation is caused by
A) the money supply growing more slowly than GDP. B) Real GDP growing more rapidly than the money supply. C) a constant increase in the money supply. D) a high rate of growth in the money supply.
Assume the asset market is always in equilibrium. Therefore a fall in Y would result in
A) higher inflation abroad. B) a decreased demand for domestic products. C) a contraction of the money supply. D) a depreciation of the home currency. E) an appreciation of the home currency.
Which of the following is the result of competing through advertising for a monopolistically competitive firm?
a. Long-run average costs shift downward. b. The firm's demand curve become flatter and shifts inward. c. The firm's demand curve keeps the same slope and shifts inward. d. Long-run average costs shift upward.
An increase in consumer wealth shifts the consumption function downward
a. True b. False Indicate whether the statement is true or false