According to the classical dichotomy, when the money supply doubles which of the following doubles?

Refer to Table 17.1. The unemployment rate for this simple economy is

A) 6%. B) 10%. C) 20%. D) 25%.

If the inflation rate in an economy is higher than expected, which of the following groups in the society would be most likely to gain?

a. Borrowers b. Lenders c. Persons holding large amounts of money d. Persons on fixed incomes e. Workers under contract without a cost of living adjustment