Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases
a. the inflation rate and growth of real GDP.
b. the inflation rate but not the growth rate of real GDP.
c. the growth rate of real GDP, but not the inflation rate.
d. neither the inflation rate nor the growth rate of real GDP.
b
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Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?
What will be an ideal response?
The business cycle depicts:
A. fluctuations in the general price level. B. the phases a business goes through from when it first opens to when it finally closes. C. the evolution of technology over time. D. short-run fluctuations in output and employment.
The marginal cost of pollution abatement is the
A. total social costs of pollution clean-up divided by total social benefits. B. additional benefit from cleaning up an additional unit of pollution. C. additional cost to clean up an additional unit of pollution. D. total social costs of pollution clean-up divided by the total units of clean-up.
________ occurs when price- and quantity-fixing agreements among producers are implicit.
A. A price-leadership model B. A Cournot model C. A monopoly D. Tacit collusion