According to monetary neutrality and the Fisher effect, an increase in the money supply growth rate eventually increases
a. inflation and nominal interest rates, but does not change real interest rates.
b. inflation, nominal interest rates, and real interest rates.
c. inflation and real interest rates, but does not change nominal interest rates.
d. nominal interest rates and real interest rates, but does not change inflation.
a
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Halibut tends to be much more expensive than cod. According to the economic way of thinking, relatively high halibut prices can be explained by
A) using the theory of supply and demand. B) pointing out the cause—Halibut boats are often more expensive than boats used to fish for cod. C) acknowledging the price differential is unfair to consumers of halibut. D) acknowledging the price differential is unfair to cod fishermen.
The farm problem in the United States can be summed up as
a. low productivity, high prices, and an income-elastic demand for food b. high productivity, high prices, and an income-elastic demand for food c. low productivity, high prices, and an income-inelastic demand for food d. high productivity, low prices, and an income-inelastic demand for food e. high productivity, low prices, and an income-elastic demand for food
A movement along a demand curve is called a change in:
A. income. B. quantity demanded. C. demand. D. tastes.
According to the median-voter theorem, the chosen policy will be the one preferred by the:
A. the average voter, rather than the largest number of voters. B. median voter. C. largest number of voters, rather than the average voter. D. greatest average of voters, rather than the majority of voters.