Author Question: In the long run, when the Fed increases the quantity of money the A) no real variable changes. ... (Read 70 times)

Cooldude101 · **on:** Jun 29, 2018

In the long run, when the Fed increases the quantity of money the

A) no real variable changes.
B) price level falls.
C) real interest rate rises.
D) nominal interest rate falls.

Question 2

If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers

A) would not change very much.
B) would rise by more than the amount of the tax.
C) would fall by an amount of the tax.
D) would fall by more than the amount of the tax.