If money is neutral and velocity is stable, an increase in the money supply creates a proportional increase in
a. real output only.
b. nominal output only.
c. the price level only.
d. both the price level and nominal output.
d
You might also like to view...
In the above table, if the market is perfectly competitive and unregulated, the equilibrium output will be
A) 1,000 units. B) 2,000 units. C) 3,000 units. D) 4,000 units.
The bank reserve equation is the
A) assets and liabilities of the entire banking system. B) tally sheet for sources and uses of reserves. C) M1 multiplier. D) Federal Reserve's method of determining how many government securities to purchase.
Consider the same ultimatum game as in the previous question but consider some new preferences reflecting a desire for fairness. In particular, now assume players get 1 util per dollar earned but lose 1/4 util for the absolute difference between their monetary payoffs. Which of the following is an offer that arises in a subgame-perfect equilibrium with these new preferences?
a. 1. b. 2. c. 4. d. 5.
Refer to the diagram and assume the economy is operating at equilibrium point w. In the short run, a decrease in the price level from P 2 to P 1 would move the economy from point w to point:
A. v.
B. x.
C. t.
D. y.