When the Federal Reserve raises the growth rate of the money supply to a permanently higher level, this produces ________ in real GDP and ________ in the inflation rate
A) a permanent increase, a permanent increase
B) a permanent increase, a temporary increase
C) no change, a temporary increase
D) a temporary increase, a temporary increase
E) a temporary increase, a permanent increase
E
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Which of the following is not an example of a market?
a. A small town has only one seller of electricity. b. In the United States, a sick person cannot legally purchase a kidney. c. In Florida, there are many buyers and sellers of key lime pie. d. The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.
What is the best example of the law of supply?
What will be an ideal response?
Suppose policy makers wish to increase steady state consumption per worker. Explain what must happen to the saving rate to achieve this objective
What will be an ideal response?
The adjustment of ________ is the rationing mechanism in market economies.
A. supply B. demand C. price D. quantity