Macro Ch 17 Monetary Growth & Inflation

43 economists agree that increases in the money

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43. Economists agree that increases in the money-supply growth rate increase inflation and that inflation is un- desirable. So why have there been hyperinflations and how have they been ended?
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44. Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold. What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent? Macro Quiz 3 Ch 17 Monetary Growth & Inflation Answer Section TRUE/FALSE 1. ANS: F PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Analytical 2. ANS: F PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money supply MSC: Analytical 3. ANS: F PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money supply MSC: Definitional 4. ANS: T PTS: 1 DIF: 1 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Shoeleather costs of inflation MSC: Definitional 5. ANS: T PTS: 1 DIF: 2 REF: 30-2 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation | Taxes | Real interest rate MSC: Analytical 6. ANS: F PTS: 1 DIF: 2 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: Interpretive 7. ANS: F PTS: 1 DIF: 2 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: Interpretive 8. ANS: T PTS: 1 DIF: 2 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Taxes | Real interest rate MSC: Interpretive 9. ANS: F PTS: 1 DIF: 1 REF: 30-2 NAT: Analytic LOC: The role of money TOP: Wealth redistribution | Inflation MSC: Applicative 10. ANS: F PTS: 1 DIF: 2 REF: 30-2 NAT: Analytic LOC: Unemployment and inflation TOP: Menu costs of inflation MSC: Applicative MULTIPLE CHOICE 11. ANS: B PTS: 1 DIF: 1 REF: 30-0 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate MSC: Definitional 12. ANS: C PTS: 1 DIF: 1 REF: 30-0 NAT: Analytic LOC: Unemployment and inflation TOP: Hyperinflation MSC: Definitional 13. ANS: A PTS: 1 DIF: 1 REF: 30-0
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NAT: Analytic LOC: Unemployment and inflation TOP: Inflation MSC: Definitional 14. ANS: D PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market | Price level MSC: Analytical 15. ANS: B PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money demand MSC: Definitional 16. ANS: C PTS: 1 DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Value of money MSC: Definitional 17. ANS: C PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money supply MSC: Definitional 18. ANS: A PTS: 1 DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Definitional 19. ANS: B PTS: 1 DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money supply MSC: Applicative 20. ANS: B PTS: 1 DIF: 1 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Applicative 21. ANS: B PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market equilibrium MSC: Analytical 22. ANS: D PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Analytical 23. ANS: C PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP: Money market MSC: Applicative 24. ANS: C PTS: 1 DIF: 2 REF: 30-1 NAT: Analytic LOC: The role of money TOP:
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  • Spring '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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