In the Friedman-Lucas money surprise model, a surprise increase in money supply growth

A) has no effect on inflation.
B) increases inflation less than in proportion to the growth rate of the money supply.
C) increases inflation in an equal proportion to the growth rate of the money supply.
D) increases inflation more than in proportion to the growth rate of the money supply.


B

Economics

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You're traveling in Ireland and are thinking about buying a new digital camera. You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros

If the exchange rate is 0.85 euros per dollar, what's the highest price in euros you'd be willing to pay for a camera? A) 105 euros B) 106.25 euros C) 110.15 euros D) 147 euros

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Which of the following forms of money will earn at least some interest income?

a. Gold coins b. Currency notes c. Traveler's checks d. Checkable deposits e. Gift checks

Economics

The costs involved with breaking a ban placed on a good depend on all of these except the:

A. punishment associated with rule breaking. B. likelihood of being caught. C. likelihood of being punished if caught. D. ability of the public or individuals to pay for those costs.

Economics