Suppose the economy was in equilibrium, and the central bank increased the money supply by an expected amount equal to $100 billion. Monetarist theory would predict that the:

a. Long-term real GDP growth will rise.
b. Long-term real GDP growth rate will fall.
c. Long-term real GDP growth rate will remain unchanged.
d. Long-term inflation rate will fall.
e. The international value of the domestic currency will rise.

.C

Economics

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Bill's Lawn service starts the year with 20 lawn mowers. During the year, 3 mowers break and are not worth fixing. Bill also expands his business and buys 10 more mowers. Bill's capital at the end of the year is ________ mowers

A) 10 B) 30 C) 27 D) 33 E) 20

Economics

A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 10 percent, what is the level of the bank's excess reserves? How much could it loan out as a result?

a. $700,000; $700,000 b. $700,000; $7,000,000 c. $300,000; $300,000 d. $300,000; $3,000,000

Economics