In terms of the price-real GDP diagram, a given expansion of the money supply will have a greater effect on prices the
a. steeper the aggregate supply curve.
b. flatter the aggregate supply curve.
c. higher the initial price level.
d. lower the initial price level.
a
You might also like to view...
________ highlights the importance of fiscal policy as a determinant of good macroeconomic performance
A) The real business cycle model B) The traditional Keynesian model C) The new Keynesian model D) Rational expectations
When a bank makes a loan to one of its customers, to the bank the loan is classified as
A) an asset. B) a liability. C) neither an asset nor a liability. D) an asset in some cases and a liability in other cases, depending on the type of loan.
Which of the following is not consistent with the efficient market hypothesis?
a. Stock prices should follow a random walk. b. Index funds should typically outperform highly managed funds. c. News has no effect on stock prices. d. There is little point in spending many hours studying the business pages looking for undervalued stocks.
Bonds that are rated in the D category are of higher quality than bonds that are rated in the A category
Indicate whether the statement is true or false