The long run effects of money supply change A) ambiguous ...

[RODY.ELKHALIL]

The long run effects of money supply change
 
  A) ambiguous effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the opposite direction.
  B) proportional effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the same direction.
  C) no effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the same direction.
  D) no effect on the long-run values of the interest rate or real output, no change in the price level's long-run value.
  E) ambiguous effect on the long-run values of the interest rate or real output, A disproportional change in the price level's long-run value in the same direction.

Question 2

How would you define convergence?
 
  A) tendency for gaps between industrial countries' per-capital incomes to narrow
  B) tendency for gaps between all countries' per-capital incomes to narrow
  C) the theory that a crisis in a low-income country will spread to all countries, regardless of debt structure
  D) the theory that a crisis in a low-income country will spread to only those countries which had lent money to the original country
  E) tendency for the world distribution of income to be persistently unequal

[ansleighelindsey]

Answer to Question 1

C

Answer to Question 2

A

[RODY.ELKHALIL]

Thank you

[ansleighelindsey]

Happy to help you