If you believe that velocity is constant and that the aggregate supply curve is horizontal, then the quantity theory of money would predict that a doubling of the money supply would cause a doubling of the
A. price level and real output.
B. price level.
C. price level and no change in real output.
D. real output.
Answer: D
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If the Federal Reserve raises its target inflation rate, the monetary policy reaction function ________ and the aggregate demand curve ________.
A. shifts upward to the left; shifts to the right B. shifts downward to the right; shifts to the left C. shifts downward to the right; shifts to the right D. shifts upward to the left; shifts to the left
Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 20% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money will most likely
A) increase the money supply by a little more than $1,000. B) increase the money supply by a little less than $1,000. C) increase the money supply by only $1,000. D) increase the money supply by $5,000.
Economists apply the term "Great Inflation" to which decade?
A) 1930s B) 1940s C) 1950s D) 1960s E) 1970s
Historically, female students have had ______.
a. the same access to rigorous curriculum as male students b. more access to rigorous curriculum than male students c. less access to rigorous curriculum than male students d. different, but equivalent access to rigorous curriculum as male students