In a model with money neutrality, how much should the money supply be increased to obtain a 1% increase in nominal output?
A) -1%
B) between 0 and 1%
C) 1%
D) It cannot be done.
C
Economics
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The Federal Reserve Bank was first established in the U.S. by an Act of Congress passed in
A) 1947. B) 1913. C) 1861. D) 1789.
Economics
The number of people who have gray hair is very high among residents living in Florida. A student concludes that living in Florida causes hair to turn gray. What is the flaw in this student's reasoning?
A) The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents. B) The student has failed to take into account other causes of gray hair. C) The student is using an inadequate sample size. D) The student is drawing a false conclusion; he is confusing cause and effect.
Economics