ucr--Econ 103--Hwk 2+asnwers

ucr--Econ 103--Hwk 2+asnwers - Name Date 1 Inflation tax...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: __________________________ Date: _____________ 1. “Inflation tax” means that: A) as the price level rises, taxpayers are pushed into higher tax brackets. B) as the price level rises, the real value of money held by the public decreases. C) as taxes increase, the rate of inflation also increases. D) in a hyperinflation, the chief source of tax revenue is often the printing of money. 2. The general demand function for real balances depends on the level of income and the: A) real interest rate. B) nominal interest rate. C) rate of inflation. D) price level. 3. According to the classical theory of money, inflation does not make workers poorer because wages increase: A) faster than the overall price level. B) more slowly than the overall price level. C) in proportion to the increase in the overall price level. D) in real terms during periods of inflation. 4. Which of the following would most likely be called a hyperinflation? A) Price increases averaged 300 percent per year. B) The inflation rate was 10 percent per year. C) Real GDP grew at a rate of 12 percent over a year. D) A stock market index rose by 1,000 points over a year. 5. The concept of monetary neutrality in the classical model means that an increase in the money supply will increase: A) real GDP. B) real interest rates. C) nominal interest rates. D) both saving and investment by the same amount. 6. A small country might want to use the money of a large country rather than print its own money if the small country: A) is likely to be unstable whereas the large country is likely to be stable. B) is likely to be stable whereas the large country is likely to be unstable. C) needs the revenue for seigniorage. D) wants to control its own inflation rate. Page 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
7. Recessions typically, but not always, include at least ______ consecutive quarters of declining real GDP.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/16/2012 for the course ECON 143D taught by Professor Gafney during the Spring '12 term at UC Riverside.

Page1 / 7

ucr--Econ 103--Hwk 2+asnwers - Name Date 1 Inflation tax...

This preview shows document pages 1 - 3. Sign up to view the full document.

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