Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold. What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent?
Inflation and nominal interest rates each increase by 5 percent points. There is no change in the real interest rate or any other real variable.
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Other things equal:
A. Owners of U.S. businesses benefit from immigration and owners of Mexican businesses are hurt by emigration B. Owners of U.S. businesses are hurt by immigration and owners of Mexican businesses benefit from emigration C. Owners of U.S. businesses benefit from emigration and owners of Mexican businesses are hurt by immigration D. The benefit owners of U.S. businesses receive from immigration is offset by the losses experienced by owners of Mexican businesses due to emigration
Use the following table to answer the next question.Interest RateTransaction Demand for MoneyAsset Demand for MoneyMoney Supply2%$220$300$46042202804606220260460822024046010220220460The equilibrium interest rate is
A. 4%. B. 2%. C. 8%. D. 6%.
The government giving the ownership of a pond to a citizen to reduce over fishing is a method to prevent _____
a. the free rider problem b. the tragedy of the commons c. asymmetric information d. deadweight loss
Other things the same, if the U.S. interest rate rises, U.S. assets become ____ attractive. So, desired net capital outflow _____. This change in net capital outflow, shifts the __________ curve in the market for foreign-currency exchange to the ______
Fill in the blank(s) with correct word