Which of the following would decrease the value of money?
a. Money demand exceeds money supply
b. The Federal Reserve sells government bonds
c. The velocity of money decreases
d. The price level decreases
a
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Evidence to support the Ricardo-Barro effect would show that
A) government budget deficits have no effect on the real interest rate or investment. B) higher government budget surpluses decrease investment. C) higher government budget deficits decrease investment. D) higher government budget deficits raise the real interest rate. E) government budget deficits increase household consumption.
Assume a market is producing efficiently. Which type of government intervention in this market might create a deadweight loss?
i. a price ceiling ii. a price floor iii. a price support A) i only B) i and ii C) iii only D) ii and iii E) i, ii, and iii