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Author Question: In the new classical model, an anticipated increase in the money stock would cause a. the price ... (Read 60 times)

OSWALD

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on: Jun 30, 2018
In the new classical model, an anticipated increase in the money stock would cause
 
  a. the price level and level of real output to rise.
  b. the price level to rise with no effect on real output.
  c. real output to rise with no effect on the price level.
  d. no change in the price level or level of real output.

Question 2

According to Keynes' theory of money demand, a low interest rate increases the likelihood of a capital ________ and ______ the interest elasticity of money demand.
 
  a. gain on bonds; reduces.
  b. gain on money; increases.
  c. loss on bonds; reduces.
  d. loss on money; increases.
  e. none of the above.


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joechoochoy

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

B

Answer to Question 2

C


OSWALD

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Reply #2 on: Jun 30, 2018
Thank you


joechoochoy

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Reply #3 on: Jun 30, 2018
No problemo


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