In an all-currency economy in which real output and the real interest rate are fixed and the rates of money growth and inflation are constant, the inflation rate equals
A. the real interest rate.
B. the nominal interest rate.
C. the level of real seignorage revenue.
D. the growth rate of the nominal money supply.
Answer: D
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Compare and contrast the shapes of the short-run and long-run Phillips curves
An increase in the demand for houses
a. increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor. b. increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor. c. decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor. d. decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
MRP represents what the marginal physical product is worth.
Answer the following statement true (T) or false (F)
Which of the following statements is true?
A) Advancements in statistical methods and data collection have made it possible for the Fed to closely link the changes in the rate of growth in M1 and M2 with changes in the rate of growth of GDP . B) The introduction of new financial products and changes in the ways people pay for transactions have blurred the distinction between M1 and M2 so that the Fed no longer has reliable estimates of the money demand curve. C) With the proliferation of new financial products, the close relationship between M1 growth and output growth has been further strengthened. D) Unlike the demand for M1, the demand for the much broader M2 money aggregate is unaffected by the financial innovation in interest bearing checking deposits.