Homework Answers
An excessive increase in the money supply increase the price level of the economy. If the money supply increases more than the growth in the ouput , there will be an excess demand for the goods and services so the producers are forced to increase the prices. The excessive increase in the money supply increases the price level in the economy and decreases the purchasing power of the dollar.
Ans: Increase prices.
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Other things equal, an excessive increase in the money supply will Multiple Choice have no impact...
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According to the Purchasing Power Parity Theorem and the Quantity Theory of Money, other things being equal, which of the following would cause the price of UK pound (r = US$/UKpound) to fall: a) A decrease in U.S. real GDP b) A decrease U.K. inflation rate c) An increase in U.S. inflation rate d) A decrease in U.S. money supply e) a decrease in UK money supply
At a minimum, the opportunity cost of holding money is equal to Multiple Choice deflation which...
At a minimum, the opportunity cost of holding money is equal to Multiple Choice deflation which may reduce its purchasing power. the rate at which money is spent. bond prices the interest rate in a standard savings account
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output. 2) reduce both the interest rate and the international value of the dollar. 3) increase both aggregate supply and real output. 4) increase net exports, increase investment, and reduce aggregate demand.
Other things equal, when U.S. money moves to take advantage of better foreign investment opportunities, then:...
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In order A,B,C, or D multiple choice questions. An increase in money supply will cause the...
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How would the money market change if there was an increase in bank reserves? Multiple Choice...
How would the money market change if there was an increase in bank reserves? Multiple Choice The money supply will not change but OB O c O D money demand will The money supply will decrease. The money supply will increase. The effect on money supply cannot be determined
5) (10 pts) Draw the Money Market graph and show the impact of an increase in Money Supply that i...
5) (10 pts) Draw the Money Market graph and show the impact of an increase in Money Supply that is brought about the Fed's actions. Label all curves and Axis. State impact on the interest rate does it increase, decrease or stay the same?
5) (10 pts) Draw the Money Market graph and show the impact of an increase in Money Supply that is brought about the Fed's actions. Label all curves and Axis. State impact on the interest rate...
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22) Using classical theory, an increase in the capital stock, other things equal, would cause 22) A) output to rise and price levels to fall B) output and prices to both rise C) a decrease in equilibrium employment D) an increase in labor supply and output 23) In the classical model; an increase in government spending funded by borowing would 23) A) increase demand for loanable funds, resulting in more consumption spending B) induce households to save more and firms...
Which one of the following, other things equal, will directly alter the U.S. balance of trade?...
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Which of the following is NOT correct? Multiple Choice Other things being equal, the more frequent...
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At a minimum, the opportunity cost of holding money is equal to Multiple Choice deflation which may reduce its purchasing power. the rate at which money is spent. bond prices the interest rate in a standard savings account
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output. 2) reduce both the interest rate and the international value of the dollar. 3) increase both aggregate supply and real output. 4) increase net exports, increase investment, and reduce aggregate demand.
How would the money market change if there was an increase in bank reserves? Multiple Choice The money supply will not change but OB O c O D money demand will The money supply will decrease. The money supply will increase. The effect on money supply cannot be determined
5) (10 pts) Draw the Money Market graph and show the impact of an increase in Money Supply that is brought about the Fed's actions. Label all curves and Axis. State impact on the interest rate does it increase, decrease or stay the same?
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Which of the following is NOT correct? Multiple Choice Other things being equal, the more frequent the compouding period, the higher the APR. 0 The arguement that 900 dollars today worth more than 900 dollars one year from now is correct only when interest rate is positive. 0 Cash flows occuring in different periods should not be compared unless the flows have been discounted to a common date. 0 Other things being equal, the more frequent the compouding period, the...
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