If the nominal money supply doubles while real money demand is unchanged, what happens to the price level?
A) The price level increases by a factor of four.
B) The price level doubles.
C) The price level is unchanged.
D) The price level falls by one-half.
B
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A very high grade point average (GPA) is an example of ________.
A) asymmetric information B) a credible signal C) a credible trademark D) adverse selection
The minimum point on the average variable cost curve is called
A) the shutdown point. B) the break-even point. C) the loss-minimizing point. D) the point of diminishing returns.
If GNP is $625 billion, receipts of factor income from the rest of the world are $25 billion, and payments of factor income to the rest of the world are $50 billion, then GDP is
A. $550 billion. B. $600 billion. C. $650 billion. D. $700 billion.
What two solutions did Keynes suggest as appropriate government policies in order to close a recessionary gap? Does the assumption of stuck prices hold true when the economy moves close to its potential output? Explain.
What will be an ideal response?