When the Fisher Effect holds, a one-percentage-point increase in the long-run money growth rate, because it ________ expected inflation, causes ________ in the nominal interest rate in the long run
A) equally lowers, a one-percentage-point decrease
B) does not change, a one-percentage point decrease
C) does not change, no change
D) equally raises, no change
E) equally raises, a one-percentage-point increase
E
Economics
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Money serves as a medium of exchange means that
A) it benefits both buyers and sellers. B) it eliminates the need for barter. C) it reduces transaction costs. D) All of the above are correct.
Economics
Given a required reserve ratio of 20 percent for all banks, total bank reserves of $300 billion could support maximum deposits of:
A. $2,000 billion. B. $1,200 billion. C. $1,500 billion. D. $60 billion.
Economics