Author Question: Suppose the inflation rate has been 6 percent over the past four years. If the Federal Reserve ... (Read 69 times)

Mimi

  • Hero Member
  • *****
  • Posts: 542
Suppose the inflation rate has been 6 percent over the past four years. If the Federal Reserve announces an increase in the growth of the money supply, adaptive expectations would predict an inflation rate of 6 percent.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If an increase prices increases total revenue in the short run, what will it do to total revenue in the long run?
 a. It will decrease total revenue in the long run.
 b. It will increase total revenue in the long run.
 c. It will leave total revenue unchanged in the long run.
  d. Any of the above results are possible in the long run.



leeeep

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

True

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

For a complete list of videos, visit our video library