The idea that expected future increases in output cause increases in the current money supply and that expected future decreases in output cause decreases in the current money supply, rather than the other way around, is known as
A) Granger causality.
B) money neutrality.
C) nominal adjustment.
D) reverse causation.
D
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In an open economy, the domestic real interest rate is determined by:
A. domestic saving and domestic investment. B. domestic investment. C. domestic saving, domestic investment, and net capital inflows. D. domestic saving and net capital inflows.
Seignorage is also known as an inflation tax since ________
A) money balances lose value in real terms B) inflation can be caused by rising energy costs C) higher interest rates can crowd-out investment spending D) budget deficits entail an increase in the size of the national debt
Jerry spends his entire income on two goods, Bran and Tea. Every month he spends half of his income on each of these goods. Jerry's income elasticity of demand for Bran is .75. What is the income elasticity of demand for Tea?
A) 1.25 B) .75 C) 1 D) Unknown with the information provided
If more French tourists visit the Grand Canyon, what is the effect in the exchange market? a. It will increase the supply of U.S. dollars
b. It will decrease the supply of U.S. dollars. c. It will increase the demand for U.S. dollars. d. It will decrease the demand for U.S. dollars.