According to classical macroeconomic theory, changes in the money supply affect
a. nominal variables and real variables.
b. nominal variables, but not real variables.
c. real variables, but not nominal variables.
d. neither nominal nor real variables.
b
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Which of the following is a nominal quantity?
A. The amount of coal mined in one month B. The current price of a barrel of oil C. The number of people unemployed D. The number of cars produced in 2005
If banks faced a 100 percent reserve requirement, a $10,000 addition to banking reserves would increase the money supply by:
a. $100 b. $1,000. c. $10,000. d. $100,000.
Traveler's check are
A. part of M1 but not M2. B. not part of M1 or M2. C. part of M2 but not M1. D. part of M1 and M2.
Which of the following is correct?
A. AVC = TVC - AFC B. AFC = TC/Q - TVC/Q C. MC = TC - TVC D. TC = AVC?Q