If the Bank of Japan permanently increases its money supply, then which of the following is most likely to take place in the short run?

a. Japanese prices will immediately decrease.
b. Japanese prices will immediately increase.
c. Japanese interest rates will increase.
d. Japanese interest rates will decrease.

Ans: d. Japanese interest rates will decrease.

Economics

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The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is

A) 5% higher in year 2 than in year 1. B) 105% higher in year 1 than in year 2. C) 105% higher in year 2 than in year 1. D) 5% higher in year 1 than in year 2.

Economics

In a monopsonistic market

A) employment is lower but wages are higher than in a comparable competitive market. B) employment is higher but wages are lower than in a comparable competitive market. C) both employment and wages are higher than in a comparable competitive market. D) both employment and wages are lower than in a comparable competitive market.

Economics