This topic contains a solution. Click here to go to the answer

Author Question: A government policymaker suggests Double the money supply and U.S. citizens' real incomes will ... (Read 98 times)

crobinson2013

  • Hero Member
  • *****
  • Posts: 535
A government policymaker suggests Double the money supply and U.S. citizens' real incomes will double. In the long run, is this policy advice correct?
 
  What will be an ideal response?

Question 2

A distinction between stocks and bonds is that
 
  A) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange.
  B) stocks represent ownership claims to the company and bonds do not.
  C) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time.
  D) bonds can be traded many times in the bond market, while stocks are non-transferable.
  E) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

coyin

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

This statement is incorrect because in the long run an increase in the quantity of money increases only the price level. Indeed, it increases the price level by the same percentage. So if the Fed followed the advice and increased the quantity of money by 100 percent (which doubles it), then in the long run the only effect is to increase the price level by 100 percent.

Answer to Question 2

B




crobinson2013

  • Member
  • Posts: 535
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


shewald78

  • Member
  • Posts: 340
Reply 3 on: Yesterday
Gracias!

 

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

For a complete list of videos, visit our video library