In the monetarist view, if the money supply has been rising too quickly for years, the resulting inflation can be brought under control by slowing money growth. This will
a. quickly reduce inflation with no side effects.
b. quickly reduce inflation with higher unemployment.
c. increase unemployment depending upon how quickly the public changes their expected price level.
d. slowly reduce inflation with higher unemployment.
e. both c and d.
E
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For most of World War II, the United States economy temporarily operated ____________ the production possibilities frontier.
Fill in the blank(s) with the appropriate word(s).
The question "Should we produce LCD televisions or computer monitors?" is an example of a ________ question
A) how B) what C) why D) where E) for whom
When the central bank of a country sells government bonds, _____
a. money flows from individual banks to the central bank, thus increasing the money supply in the economy b. money flows from the central bank to individual banks, thus reducing the money supply in the economy c. money flows from individual banks to the central bank, thus reducing the money supply in the economy d. money flows from the central bank to individual banks, thus increasing the money supply in the economy
Velocity is computed as the
a. price level times real GDP divided by the money supply. b. price level times the money supply divided by real GDP. c. real GDP times the money supply divided by the price level. d. real GDP times the money supply divided by the rate at which money changes hands.