In an economy in which velocity of money in circulation is constant and real output grows at an average rate of 3 percent per year, a 5 percent average rate of growth in the money supply would result in a:
a. constant price level

Under a riparian system, water rights

a. Are allocated according to its most highly-valued uses b. Are separate from the ownership of land c. Are based on who moved to an area first d. Are freely traded in water markets e. Are owned by those owning adjacent land

If strong monetary policy stimulus is used to combat a recessionary gap, what will happen?

a. a rapid movement toward lower unemployment and higher inflation b. a rapid movement toward lower unemployment and lower inflation c. a slow movement toward lower unemployment and higher inflation d. a slow movement toward lower unemployment and lower inflation