This topic contains a solution. Click here to go to the answer

Author Question: Suppose the central bank increases the money supply in an economy unexpectedly during a year. If the ... (Read 86 times)

kfurse

  • Hero Member
  • *****
  • Posts: 590
Suppose the central bank increases the money supply in an economy unexpectedly during a year. If the current inflation rate in this country is 3.4 percent, then according to new classical economists, the expected inflation rate for the following year would be:
 a. 3.4 percent.
  b. less than 3.4 percent.
  c. 2.4 percent, because people form their expectations adaptively.
  d. around 6.8 percent.
  e. greater than 3.4 percent.

Question 2

An increase in demand will increase total revenue:
 a. Always.
 b. Only if supply is relatively inelastic.
  c. Only if supply is relatively elastic.
  d. Only if supply is unit elastic.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Shshxj

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

e

Answer to Question 2

a




kfurse

  • Member
  • Posts: 590
Reply 2 on: Jun 30, 2018
Excellent


ecabral0

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Gracias!

 

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

For a complete list of videos, visit our video library