Other things the same, if the money supply rises by 5% and people were expecting it to rise by 2%, then some firms have
a) lower than desired prices, which increases their sales.
b) higher than desired prices, which increases their sales.
c) higher than desired prices, which depresses their sales.
d) lower than desired prices, which depresses their sales.
Ans: a) lower than desired prices, which increases their sales.
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Refunding the debt refers to
a. selling new bonds to raise money to pay off maturing bonds. b. raising taxes to lower the national debt ceiling. c. raising the debt ceiling to allow the government to issue more debt. d. Fed purchases of government bonds in the open market.
In Figure 35.1, what is the opportunity cost of motorcycles in Japan?
A. 1 DVD player per motorcycle. B. 2 DVD players per motorcycle. C. 3 DVD players per motorcycle. D. 1/2 of a DVD player per motorcycle.