According to the classical model, a 10-percent increase in the money supply, holding everything else constant, will lead to
a. a 10% increase in prices, a 10% increase in the real wage, and a 10% increase in interest rates.
b. a 10% increase in prices, a 10% increase in the money wage, and a 10% increase in interest rates.
c. a 10% increase in prices, a 10% increase in the money wage, and no change in interest rates.
d. a 10% increase in prices and no change in the money wage or interest rates.
e. none of the above.
B
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Which of the following is true?
a. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners. b. If the Australian dollar depreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners. c. If the Australian dollar depreciates, the Australian trade deficit increases, since Australian products become more expensive to foreigners. d. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become cheaper to foreigners. e. If the Australian dollar appreciates, the Australian trade deficit decreases, since Australian products become more expensive to foreigners.
Which of the following is true of the shape of the long-run Phillips curve? a. It is horizontal
b. It is vertical. c. It is downward sloping. d. It is upward sloping.
Other things constant, an increase in resource prices will:
A. increase aggregate demand. B. decrease aggregate demand. C. decrease aggregate supply. D. increase aggregate supply.
In the Cournot model of oligopoly, firms produce
a. the competitive quantity. b. the monopoly quantity. c. more than the monopoly quantity, but less than the competitive quantity. d. less than the monopoly quantity.