1. Under the long-run neutrality of money, doubling the money supply will eventually lead to a...
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1. Under the long-run neutrality of money, doubling the money supply will eventually lead to a doubling of (a) the real wage. (b) the real exchange rate. (c) none of the other answers are correct. (d) real GDP. (e) the nominal interest rate. 2. Consider our basic Classical model of price determination. A one-time, permanent increase in the level of the money supply 3. (a) (b) lowers real money demand. (c) raises the price level. (d) lowers the real money supply. (e) All of these responses are true. lowers the nominal interest rate. Consider our basic Classical model of price determination. A one-time, permanent increase the level of real income (a) raises the nominal interest rate. (b) lowers the price level. (c) lowers real money demand. (d) lowers the real money supply. (e) All of these responses are true. 4. The magnification effect is due to (a) the actions of irrational speculators in the FX market. (b) the rise of the nominal money supply in response to higher inflation. (c) a lack of independence of some central banks. (d) endogeneity of the real interest rate. (e) the decline of money demand when expected inflation rises. 1. Under the long-run neutrality of money, doubling the money supply will eventually lead to a doubling of (a) the real wage. (b) the real exchange rate. (c) none of the other answers are correct. (d) real GDP. (e) the nominal interest rate. 2. Consider our basic Classical model of price determination. A one-time, permanent increase in the level of the money supply 3. (a) (b) lowers real money demand. (c) raises the price level. (d) lowers the real money supply. (e) All of these responses are true. lowers the nominal interest rate. Consider our basic Classical model of price determination. A one-time, permanent increase the level of real income (a) raises the nominal interest rate. (b) lowers the price level. (c) lowers real money demand. (d) lowers the real money supply. (e) All of these responses are true. 4. The magnification effect is due to (a) the actions of irrational speculators in the FX market. (b) the rise of the nominal money supply in response to higher inflation. (c) a lack of independence of some central banks. (d) endogeneity of the real interest rate. (e) the decline of money demand when expected inflation rises.
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Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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