If the money demand function is given by Md = 10 + 0.2Y 10r then ...

[bb]

If the money demand function is given by Md = 10 + 0.2Y  10r then a 10-unit increase in the quantity of money will cause the LM schedule to shifts to
 
  a. to the right by 10 units.
  b. the right by 50 units.
  c. to the left by 40 units.
  d. to the left by 50 units.
  e. to the right by 40 units.

Question 2

Hyperinflation typically ________.
 
  A) describes periods of extreme price increases of over 50 per month or 1,000 per year
  B) is a result of extreme periods of money growth that tend to come from large fiscal imbalances
  C) affects both poor and developed economies
  D) all of the above
  E) none of the above

[Eunice618]

Answer to Question 1

B

Answer to Question 2

D

[bb]

Excellent

[ricroger]

Gracias!