Ec102_01__-_Ch_11_Inflation_Its_Causes_a

Ec102_01__-_Ch_11_Inflation_Its_Causes_a -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
0ddcf919d3a1e193e1acae07a9880855e5bd205a.doc 1 1. Suppose Bank of Canada sells government bonds. Use a graph of the money market to  show what this does to the value of money. 2. Using separate graphs, demonstrate what happens to the money supply, money demand,  the value of money, and the price level if: a. The Bank of Canada increases the money supply. b. People decide to demand less money at each value of money. 3. According to the classical dichotomy, what changes nominal variables? What changes real  variables? 4. Suppose that monetary neutrality holds. Of the following variables, which ones do not  change when the money supply increases? 5. Identify each of the following as nominal or real variables. The physical output of goods and services The overall price level The dollar price of apples The price of apples relative to the price of oranges The unemployment rate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Ec102_01__-_Ch_11_Inflation_Its_Causes_a -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online