Holding other things constant, a depreciation of the US Dollar relative to the Kenyan Shilling would cause the demand for the Shilling to _____________ and the supply for Shilling to __________
a. Increase; decrease
b. Increase, increase
c. Decrease; Increase
d. Decrease; Decrease
c
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If there is an adverse supply shock and the Federal Reserve responds by increasing the growth rate of the money supply, then in the short run the Federal Reserve's action will raise inflation and lower unemployment
a. True b. False Indicate whether the statement is true or false
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $12,500 B. $37,500 C. $40,000 D. $50,000
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Siegnorage is equal to
A) the rate of inflation. B) one divided by the rate of inflation. C) real money balances. D) the percentage growth rate of nominal money. E) the percentage growth rate of nominal money times real money balances.