Author Question: When the Fed changes the quantity of money, there is an immediate effect on A) the inflation rate ... (Read 29 times)

Capo · **on:** Jun 29, 2018

When the Fed changes the quantity of money, there is an immediate effect on

A) the inflation rate but not the price level.
B) the nominal interest rate.
C) real GDP.
D) the price level and the inflation rate.
E) the price level but not the inflation rate.

Question 2

Suppose Mack's wage was 7.00 an hour in 2001 and was 12.00 per hour in 2012. The CPI was 94 in 2001 and 201 in 2012. The 2001 wage in terms of 2012 dollars is

A) 13.16. B) 7.00. C) 14.97. D) 14.07. E) 3.48.