This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If an increase in the level of money supply leads to a proportionate increase in prices with no ... (Read 72 times)

ts19998

  • Hero Member
  • *****
  • Posts: 531
on: Jun 30, 2018
If an increase in the level of money supply leads to a proportionate increase in prices with no effect on real variables ,we say that
 
  A) the Fisher relationship holds.
  B) money is neutral.
  C) money is superneutral.
  D) money is a medium of exchange.

Question 2

What is the meaning of animal spirits? How do these relate to planned investment spending and to unplanned investment spending?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

uniquea123

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

Animal spirits are emotional waves of optimism and pessimism. They influence autonomous investment, changing the amount of planned investment at any real interest rate. They impact unplanned investment, as well, since each firm's planned investment expenditures are, typically, purchases from other firms. A sudden change from optimism to pessimism will leave businesses with unsold inventory, an increase in inventory investment. Unplanned negative inventory investment results from a change from pessimism to optimism.


ts19998

  • Hero Member
  • *****
  • Posts: 531
Reply #2 on: Jun 30, 2018
Thank you :)


uniquea123

  • Sr. Member
  • ****
  • Posts: 311
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

The central dogma of genetics at the molecular level. The central dogma of genetics at the molecular level.
Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes
Masaccio, The Tribute Money. Masaccio, The Tribute Money.
Using the voltmeter leads from a starting and charging test unit to measure the voltage drop ... Using the voltmeter leads from a starting and charging test unit to measure the voltage drop ...
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Changes in the Level of Education, 1975-2010 Changes in the Level of Education, 1975-2010
Video: Coronary Heart Disease Animation

For a complete list of videos, visit our video library