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Author Question: Suppose that an economy is initially producing at the full-employment level of output. Now suppose ... (Read 151 times)

ss2343

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on: Jun 30, 2018
Suppose that an economy is initially producing at the full-employment level of output. Now suppose there is a reduction in the money supply. Other things being equal we can expect
 
  A) demand-side inflation. B) supply-side inflation.
  C) deflation. D) cost-pull inflation.

Question 2

The demand for money is based on
 
  A) the demand for consumption, demand for investment, and demand by government.
  B) the demand for cash, demand for securities, and the demand for real estate.
  C) a demand for liquidity and wealth.
  D) the transactions demand, asset demand, and precautionary demand.


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softEldritch

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

D


ss2343

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

kjohnson

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Reply 3 on: Yesterday
Gracias!

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