Macro Ch 17 Monetary Growth &amp; Inflation

# 15 as the price level decreases the value of money a

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____ 15. As the price level decreases, the value of money a. increases, so people want to hold more of it. b. increases, so people want to hold less of it. c. decreases, so people want to hold more of it. d. decreases, so people want to hold less of it. ____ 16. When the price level falls, the number of dollars needed to buy a representative basket of goods ____ 17. The supply of money increases when ____ 18. When the money market is drawn with the value of money on the vertical axis, long-run equilibrium is ob- tained when the quantity demanded and quantity supplied of money are equal due to adjustments in ____ 19. When the money market is drawn with the value of money on the vertical axis, if the Fed sells bonds then a. the money supply and the price level increase. b. the money supply and the price level decrease. c. the money supply increases and the price level decreases. d. the money supply increases and the price level increases. ____ 20. In the fourteenth century, the Western African Emperor Kankan Musa traveled to Cairo where he gave away much gold, which was in use as a medium of exchange. We would predict that this increase in gold ____ 21. Suppose there is a surplus in the money market.

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Figure 30-1 ____ 22. Refer to Figure 30-1 . If the money supply is MS 2 and the value of money is 2, then there is an excess ____
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• Fall '09
• Friedlander
• Inflation, Analytic Definitional D Analytic Analytical B Analytic Definitional C Analytic Definitional C Analytic Definitional A Analytic Definitional B Analytic Applicative B Analytic Applicative B Analytic Analytical D Analytic Analytical C Analytic Applicative C

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