Calculate the change in the price level for each of the following events, taken one at a time, with other variables unchanged.(a)Money supply increases 10%.(b)Money demand increases 5%.(c)Money supply decreases 5% while money demand increases 5%.(d)Money supply increases 15% while money demand increases 5%.
What will be an ideal response?
| (a) | 10% |
| (b) | -5% |
| (c) | -10% |
| (d) | 10% |
You might also like to view...
Assume that there were decreasing opportunity costs of production in an island economy that only produced two goods. What would the shape of the production possibilities frontier look like and why?
What will be an ideal response?
Why does Philip Morris produce so many different kinds of cigarettes?
If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who
a. have the highest opportunity cost. b. have a comparative advantage in the productive activity. c. can complete the productive activity most rapidly. d. least enjoy performing the productive activity.
A toll on a congested road is in essence
a. an interstate highway tax. b. a Department of Motor Vehicles tax. c. a gasoline tax. d. a corrective tax.