Question : 11) In the long run, when the Fed increases the : 1240488

 

 

 

 

 

11) In the long run, when the Fed increases the quantity of money, the

A) price level rises.

B) nominal interest rate falls.

C) demand for money decreases.

D) price level falls.

E) real interest rate rises.

12) In the long run, an increase in the quantity of money leads to

A) an equal percentage increase in the real interest rate.

B) a smaller percentage increase in the real interest rate.

C) an equal percentage increase in the price level.

D) a smaller percentage increase in the price level.

E) no effect on the price level or on real GDP.

 

13) In the long run, an increase in the quantity of money, other things remaining the same,

A) increases the price level.

B) decreases the price level.

C) increases real GDP.

D) decreases real GDP.

E) has no effect on the price level or real GDP.

 

14) Other things remaining the same, in the long run ________ in the quantity of money brings an equal percentage ________.

A) an increase; decrease in the price level

B) a decrease; decrease in the price level

C) a decrease; increase in the price level

D) a decrease; increase in the nominal interest rate

E) an increase; increase in the real interest rate

15) The proposition that in the long run when real GDP equals potential GDP, an increase in the quantity of money leads to an equal percentage increase in the price level is the called the quantity theory of

A) constant velocity.

B) inflation.

C) money.

D) equal change.

E) the long run.

 

16) When real GDP equals potential GDP, the quantity theory of money says that an increase in the quantity of money brings an equal percentage

A) increase in the price level.

B) increase in real GDP.

C) decrease in the price level.

D) decrease in velocity.

E) decrease in real GDP.

 

17) Using the quantity theory of money, in the long run a 3 percent increase in the quantity of money leads to a 3 percent

A) increase in the price level.

B) increase in the real interest rate.

C) decrease in the price level.

D) decrease in the real interest rate.

E) increase in real GDP.

18) The average number of times in a year each dollar is used to buy goods and service is called

A) velocity of circulation.

B) inflation.

C) circulation rate.

D) nominal GDP.

E) rate of circulation speed.

 

19) The “velocity of circulation” refers to the

A) ratio between the quantity of money and the price level.

B) average number of times in a year each dollar is used to buy goods and services.

C) average number of times a dollar is deposited and withdrawn from a bank account.

D) average speed with which the Fed increases or decreases the quantity of money.

E) average speed with which the nominal interest rate changes when the inflation rate changes.

 

20) The velocity of circulation is defined as the

A) average number of times in a year that each dollar is used to buy goods and services.

B) quantity of money supplied by the Fed.

C) quantity of money demanded at equilibrium.

D) price level obtained when the money market is at its equilibrium.

E) speed with which changes in the interest rate spread throughout the economy.

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more