According to the Monetarist view, the impact of expansionary monetary policy will be:
A. a decrease in the price level in the long-run.
B. the same regardless of whether the effects of the policy are anticipated or unanticipated.
C. a higher price level (inflation).
D. a decrease in short-run prices and an increase in long-run prices.
Answer: C
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Use the above table to answer these questions: (a) In what year did disinflation begin? (b) In what year did deflation begin?
A decrease in aggregate supply can result in:
a. unemployment. b. demand-pull inflation. c. prosperity. d. cost-push inflation. e. a recession.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserves account in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises
and reserves account becomes more negative (or less positive). b. The quantity of real loanable funds per time period falls and reserves account remains the same. c. The quantity of real loanable funds per time period and reserves account remain the same. d. The quantity of real loanable funds per time period rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following will not cause an increase in demand for good X?
What will be an ideal response?