Ch 17 review questions

# Ch 17 review questions - new money. Which of the following...

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Question 1 0 out of 1 points Deflation Correct Answer: Question 2 1 out of 1 points If M = 3,000, P = 2, and Y = 12,000, what is velocity? Correct Answer: Question 3 0 out of 1 points Other things the same, an increase in velocity means that Correct Answer: b. level rises. Question 4 1 out of 1 points The inflation tax refers to Correct Answer: Question 5 1 out of 1 points If the nominal interest rate is 8 percent and expected inflation is 3.5 percent, then what is the real interest rate? Selected Answer: Correct Answer:

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Question 6 0 out of 1 points If Y and V are constant, and M doubles, the quantity equation implies that the price level Correct Answer: Question 7 1 out of 1 points Suppose the United States unexpectedly decided to pay off its debt by printing
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Unformatted text preview: new money. Which of the following would happen? Correct Answer: Question 8 1 out of 1 points The nominal interest rate is 5 percent and the real interest rate is 2 percent. What is the inflation rate? Correct Answer: Question 9 0 out of 1 points The Fisher effect Correct Answer: c. interest rate to the inflation rate. Question 10 0 out of 1 points People go to the bank more frequently to reduce currency holdings when inflation is high. The sacrifice of time and convenience that is involved in doing that is referred to as Correct Answer: Question 11 0 out of 1 points In the U.S., people are required to pay taxes on Correct Answer: a. interest earnings. Question 12 0 out of 1 points If inflation is higher than what was expected, Correct Answer: c. anticipated....
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## This note was uploaded on 03/30/2012 for the course ECO 155 taught by Professor Staff during the Spring '08 term at Missouri State University-Springfield.

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Ch 17 review questions - new money. Which of the following...

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