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Author Question: Suppose the central bank increases the money supply in an economy unexpectedly during a year. If the ... (Read 51 times)

kfurse

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Suppose the central bank increases the money supply in an economy unexpectedly during a year. If the current inflation rate in this country is 3.4 percent, then according to new classical economists, the expected inflation rate for the following year would be:
 a. 3.4 percent.
  b. less than 3.4 percent.
  c. 2.4 percent, because people form their expectations adaptively.
  d. around 6.8 percent.
  e. greater than 3.4 percent.

Question 2

An increase in demand will increase total revenue:
 a. Always.
 b. Only if supply is relatively inelastic.
  c. Only if supply is relatively elastic.
  d. Only if supply is unit elastic.



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Shshxj

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Answer to Question 1

e

Answer to Question 2

a




kfurse

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


bdobbins

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Reply 3 on: Yesterday
Wow, this really help

 

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