During hyperinflation, exploding inflation causes real money demand to
A) fall over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
B) increase over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
C) fall over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises.
D) increase over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises.
E) fall over time, and this additional monetary change makes money prices decrease even less quickly than the money supply itself rises.
A
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In late 2007, the Fed began a series of cuts in the federal funds rate. Because the core inflation rate was about two percent, the most likely reason for these interest rate cuts was
A) to increase the real interest rate. B) to avoid a recession. C) to encourage households to save more money. D) to reduce the natural unemployment rate. E) to raise the price of the dollar in the foreign exchange market.
Individual price discrimination is used when
A) firms are dealing with individual consumers, such as in a line at the coffee shop. B) firms cannot easily determine consumers' reservation prices. C) firms are selling to non-local buyers. D) salespeople are in a difficult industry, such as auto sales.
Which of the following could increase the labor-supply curve for computer-repair technicians?
a. an increase in the wages paid to computer-repair technicians b. an increase in immigration c. a change in the work preferences of men, with more of them preferring to be stay-at-home fathers d. an increase in the wages paid to television-repair technicians
Which of the following is likely to have the most inelastic price elasticity of demand?
A. Automobiles. B. Pickup trucks. C. The Hondas one Honda dealer sells. D. Hondas.