If wages and prices are flexible, then an anticipated change in the money supply will cause wages and prices to __________ the actual inflation rate
A) increase at the same rate as
B) increase at a higher rate than
C) increase at a slower rate than
D) cannot be exactly predicted
A
You might also like to view...
If all prices, including the price of beef, increase by 3%, then the relative price of beef has ________ and inflation ________.
A. remained constant; has not occurred B. remained constant; has occurred C. increased; has not occurred D. increased; has occurred
Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that
A) personal trainers are deliberately charging high prices because they provide services for wealthy clients. B) the demand for personal trainers has increased. C) the law of demand has been violated. D) the number of personal trainers has increased.
The_____________is the principle that suppliers will normally offer more for sale at higher prices than lower prices.
Fill in the blank(s) with the appropriate word(s).
If nominal GDP decreases this will:
a. Decrease the transactions demand and total demand for money b. Increase the transactions demand for money but decrease the total demand for money c. Increase the transactions demand and total demand for money d. Decrease the transactions demand for money but increase the total demand for money