Quantity of money’s real impact on things

Q61

1 Point

The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning

 

both the short run and the long run.

 

the short run, but not the long run.

 

the long run, but not the short run.

 

neither the long run nor the short run.

Q62

1 Point

The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected,

 

production is more profitable and employment rises.

 

production is more profitable and employment falls.

 

production is less profitable and employment rises

 

production is less profitable and employment falls.

Q63

1 Point

According to liquidity preference theory, the slope of the money demand curve is explained as follows:

 

Interest rates rise as the Fed reduces the quantity of money demanded.

 

Interest rates fall as the Fed reduces the supply of money.

 

People will want to hold less money as the cost of holding it falls.

 

People will want to hold more money as the cost of holding it falls.

Q64

1 Point

If the MPC is 0.80 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by

 

$80 billion.

 

$125 billion.

 

$500 billion.

 

$800 billion.

Q65

1 Point

According to the AS-AD model, in the long run, changes in the money supply affect

 

prices.

 

output.

 

unemployment rates.

 

All of the above.


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