A) both debtors and creditors would have reduced real wealth.
B) both debtors and creditors would have increased real wealth.
C) debtors would gain at the expense of creditors.
D) creditors would gain at the expense of debtors.
F) A) and C)
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A) either a rise in output or a rise in the rate at which money changes hands.
B) either a rise in output or a fall in the rate at which money changes hands.
C) either a fall in output or a rise in the rate at which money changes hands.
D) either a fall in output or a fall in the rate at which money changes hands.
F) C) and D)
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A) and equilibrium quantity of money to increase.
B) and equilibrium quantity of money to decrease.
C) to increase, while the equilibrium quantity of money decreases.
D) to decrease, while the equilibrium quantity of money increases.
F) B) and C)
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B) False
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A) and inflation are nominal variables.
B) and inflation are real variables.
C) are real variables; inflation is a nominal variable.
D) are nominal variables; inflation is a real variable.
F) None of the above
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A) increases the price level by more than 5 percent.
B) increases the price level by 5 percent
C) increases the price level by 5 percent.
D) does not change the price level.
F) A) and B)
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B) False
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B) False
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B) False
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A) increases, so people want to hold more of it.
B) increases, so people want to hold less of it.
C) decreases, so people want to hold more of it.
D) decreases, so people want to hold less of it.
F) A) and C)
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A) increases, so people want to hold more of it.
B) increases, so people want to hold less of it.
C) decreases, so people want to hold more of it.
D) decreases, so people want to hold less of it.
F) A) and D)
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A) 5.4 percent
B) 5 percent
C) 4.1 percent
D) 3.6 percent
F) B) and D)
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A) $60. If the price of ice cream cones rises, to maintain the real value of her money holdings she need to hold more dollars.
B) $60. If the price of ice cream cones rises, to maintain the real value of her money holdings she need to hold fewer dollars.
C) 20 ice cream cones. If the price of ice cream cones rises, to maintain the real value of her money holdings she needs to hold more dollars.
D) 20 ice cream cones. If the price of ice cream cones rises, to maintain the real value of her money holdings she needs to hold fewer dollars.
F) A) and B)
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A) for those who save than for those who borrow.
B) for those who hold a little money than for those who hold a lot of money.
C) for those whose wages increase by as much as inflation than those who are paid a fixed nominal wage.
D) for savers in low income tax brackets than for savers in high income tax brackets.
F) C) and D)
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A) Inflation is 2.5 percent; the tax rate is 25 percent.
B) Inflation is 3 percent; the tax rate is 20 percent.
C) Inflation is 2 percent; the tax rate is 30 percent.
D) The after-tax real interest rate is the same for all of the above.
F) A) and C)
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A) 4
B) 6
C) 8
D) 12
F) A) and C)
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A) the money supply must have increased, perhaps because the Fed bought bonds.
B) the money supply must have increased, perhaps because the Fed sold bonds.
C) the money supply must have decreased, perhaps because the Fed bought bonds.
D) the money supply must have decreased, perhaps because the Fed sold bonds.
F) All of the above
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B) False
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A) either money demand or money supply shifts right.
B) either money demand or money supply shifts left.
C) money demand shifts right or money supply shifts left.
D) money demand shifts left or money supply shifts right.
F) A) and B)
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A) $90
B) $95
C) $100
D) None of the above is correct.
F) All of the above
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