Suppose the federal reserve implements expansionary monetary policy where the money supply increase which of the following will tend to occur in the long run as a result of the monetary loftily action
A) Output and the price level will both increase.
B) Output will increase with no change in the price level.
C) An if read in the price level and no change in output
D) No change in either the price level or output
Answer: C) An if read in the price level and no change in output
You might also like to view...
Suppose that in Belize, the opportunity cost of producing a sailboat is 5 hang gliders. In Honduras, the opportunity cost of producing a sailboat is 8 hang gliders
a. What is the opportunity cost of producing a hang glider for Belize? b. What is the opportunity cost of producing a hang glider for Honduras? c. Which country has a comparative advantage in the production of hang gliders? d. Which country has a comparative advantage in the production of sailboats?
Describe the real option approach to risk-adjusted capital budgeting
What will be an ideal response?