The long run effects of money supply change
A) ambiguous effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the opposite direction.
B) proportional effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the same direction.
C) no effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the same direction.
D) no effect on the long-run values of the interest rate or real output, no change in the price level's long-run value.
E) ambiguous effect on the long-run values of the interest rate or real output, A disproportional change in the price level's long-run value in the same direction.
C
You might also like to view...
A rightward shift of the labor demand curve during a recession due to a government policy leads to ________ if wages are flexible
A) a fall in prices B) a decrease in real wages C) a fall in interest rates D) an increase in employment
Explain how the nominal wage rate is converted into the real wage rate. Explain why this process of conversion changes the nominal wage rate into the real wage rate
What will be an ideal response?
Most cultural theories of poverty assert that the poor lack sufficient desire and motivation to escape poverty
Indicate whether the statement is true or false
A price ceiling keeps a price:
a. from rising above a certain level. b. from decreasing below a certain level. c. at a stabilized point. d. from increasing or decreasing.