When the money supply rises by 10%, in the short run, output ________ and the price level ________
A) rises; is unchanged
B) declines; falls
C) is unchanged; falls
D) declines; is unchanged
A
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In one hour John can produce 20 loaves of bread or 8 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?
A) Phyllis has a comparative advantage in producing bread. B) John has a comparative advantage in producing cakes. C) Phyllis has an absolute advantage in both goods. D) John has an absolute advantage in both goods. E) Phyllis has a comparative advantage in producing both cakes and bread.
Which of the following is CORRECT? The demand for money
A) increases as real GDP increases. B) decreases as the price level increases. C) depends on the quantity of money. D) increases when the nominal interest rate rises.
Which of the following is likely to reduce the impact of a monopsony?
a. Absence of competing firms b. Higher search costs c. An increased ability of workers to relocate elsewhere d. Higher movement and information costs
In the market for insurance, the adverse selection problem leads a. those most likely to collect on insurance to buy it
b. those who buy insurance to take fewer precautions to avoid the insured risk. c. those with less insurance to take on more risk. d. to none of the above.