Under monetary neutrality, an increase in the money supply causes output to ________ and the price level to ________.

A. rise; rise
B. not change; rise
C. rise; not change
D. not change; not change


Answer: B

Economics

You might also like to view...

Suppose a bank has assets of $500 million and capital of $100 million. Its return on assets is -3%. What is its leverage ratio? What is its return on equity?

What will be an ideal response?

Economics

International trade between two nations increases the standard of living of both nations due to

A) specialization and gains from absolute advantage. B) specialization and gains from comparative advantage. C) high tariffs. D) political intervention.

Economics

U.S. interest payments on the federal debt as a percentage of federal outlays are lower today than in the 1990s

a. True b. False Indicate whether the statement is true or false

Economics

A market economy answers the question "how" will goods be produced by focusing on a. dollar votes

b. consumer sovereignty. c. least-cost method of production. d. who can afford these goods.

Economics