According to monetarists, an increase in the money supply:
a) in the short-run will only increase prices.
b) in the long-run will only increase prices.
c) in the long-run can increase prices or output.
d) in the long-run will only increase output.fv
Ans: b) in the long-run will only increase prices.
You might also like to view...
Refer to Table 5.1. Hector has a comparative advantage in the production of
A) bracelets. B) tiaras. C) both products. D) neither product.
Grant has $200 to spend each month on restaurant meals and jazz performances at his
neighborhood jazz club. The price of a typical restaurant meal is $20 and the price of a jazz performance ticket is $10. Grant is maximizing his utility by consuming 6 restaurant meals and attending 8 jazz performances. Suppose Grant still has $200 to spend, but the price of restaurant meal rises to $25, while the price of jazz performance ticket drops to $8. Can it be determined if Grant is better off or worse off than he was before the price change? Use a budget constraint/indifference curve graph to illustrate your answer.
According to economic reasoning, you should offer one hour of volunteer service per week when
A) the additional benefits of doing so are greater than the additional costs. B) the additional costs of doing so are the same as the additional benefits. C) the additional costs of doing so are greater than the additional benefits. D) the total benefits of doing so are less than the total costs.
Market signals are
A. used to differentiate those who will drive equally carefully whether or not they have auto insurance from those who drive less carefully when they have insurance. B. actions taken by buyers and sellers to communicate quality in the presence of perfect information. C. used to distinguish between high and low quality and help correct the adverse selection problem. D. only strong if obtaining the signal is more costly for individuals with valued traits than for those with non-valued traits.