Question

In: Economics

When the supply and demand for money are expressed in a graph with the interest rate...

When the supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis, an increase in the price level

  1. none of these answers
  2. shifts money demand to the right and increases the interest rate.
  3. shifts money demand to the right and decreases the interest rate.
  4. shifts money demand to the left and increases the interest rate.

A multiple-choice question with one possible answer.(Required)

If the marginal propensity to consume MPC is 0. 5, the value of the multiplier is

  1. 0.75
  2. 7.5
  3. 4.
  4. 2

A multiple-choice question with one possible answer.(Required)

The Permanent Income and Life-Cycle Hypotheses imply that

  1. The primary determinant of permanent income is current consumption.
  2. The primary determinant of current consumption is permanent income.
  3. Consumers are more likely to save if they are uncertain about the future.
  4. Consumers generally favor current consumption over future consumption.

A multiple-choice question with one possible answer.(Required)

In the long run, inflation is caused by

  1. governments that print too much money.
  2. governments that raise taxes so high that it increases the cost of doing business and, hence, raises prices.
  3. banks that have market power and refuse to lend money.
  4. increases in the price of inputs, such as labor and oil.

A multiple-choice question with one possible answer.(Required)

If the money supply grows 5 per cent, and real output grows 2 per cent, prices should rise by

  1. more than 5 per cent.
  2. 5 per cent.
  3. 10 per cent.
  4. none of these answers.

A multiple-choice question with several possible answers.(Required)

Examples of fiat money are

  1. paper euros.
  2. paper JPYs.
  3. gold.
  4. silver coins.

A multiple-choice question with one possible answer.(Required)

The natural rate of unemployment is likely to fall if

  1. Unemployment benefits increase.
  2. Income tax increases.
  3. More training is available for the unemployed.
  4. Geographical immobility increases.

Manual

manaba 2.94

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