Macro Ch 17 Monetary Growth & Inflation

Refer to figure 30 1 when the money supply curve

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23. Refer to Figure 30-1 . When the money supply curve shifts from MS 1 to MS 2 , a. the demand for goods and services decreases. b. the economy's ability to produce goods and services increases. c. the equilibrium price level increases. d. the equilibrium value of money increases. Figure 30-3 . On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
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MD MS 10,000 MS 15,000 1 2 0.33 0.5 ____ 24. Refer to Figure 30-3 . Which of the following events could explain a shift of the money-supply curve from MS 1 to MS 2 ? ____ 25. According to the principle of monetary neutrality, a decrease in the money supply will not change ____ 26. If Y and M are constant, and V doubles, the quantity equation implies that the price level ____ 27. If V and M are constant, and Y doubles, the quantity equation implies that the price level a. falls to half its original level. b. does not change. c. doubles. d. more than doubles. ____ 28. Suppose that velocity rises while the money supply stays the same. It follows that ____ 29. Suppose over some period of time the money supply tripled, velocity was unchanged, and real GDP doubled. According to the quantity equation the price level is now
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____ 30. If real output in an economy is 1,000 goods per year, the money supply is $300, and each dollar is spent an average of 3 times per year, then according to the quantity equation, the average price level is ____ 31. Which of the following is consistent with the idea that high money supply growth leads to high inflation? a. the quantity theory and evidence from four hyperinflations during the 1920’s b. the quantity theory but not evidence from four hyperinflations during the 1920’s c. evidence from four hyperinflations during the 1920’s but not the quantity theory d. neither the quantity theory nor evidence from four hyperinflation during the 1920’s ____
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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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