Author Question: The long-run effect of an increase in the growth rate of the quantity of money is a A) higher ... (Read 75 times)

daltonest1984 · **on:** Jun 29, 2018

The long-run effect of an increase in the growth rate of the quantity of money is a

A) higher nominal interest rate.
B) lower nominal interest rate.
C) lower real interest rate.
D) lower inflation rate.
E) higher real interest rate.

Question 2

If purchasing power parity exists and the exchange rate is 1.50 U.S. dollars per British pound, than a latte that has a price of 4.00 in San Jose, California, has a price of ________ in London, England.

A) 2.67 pounds B) 4.00 pounds C) 8.00 pounds D) 0.37 pounds E) 6.00 pounds