Author Question: If an increase in the growth rate of the money supply results in an equal increase in the rate of ... (Read 73 times)

a0266361136 · **on:** Jun 30, 2018

If an increase in the growth rate of the money supply results in an equal increase in the rate of inflation with no effect on any real variables, we say that

A) the classical dichotomy fails.
B) money is neutral.
C) money is superneutral.
D) money is the most preferred store of value.

Question 2

The financial market events of September and October 2008 ________.

A) sparked a sharp widening of the credit spread
B) signalled the success of the policy response to the financial crisis
C) reduced some of the uncertainty that had paralyzed financial markets
D) resulted from the federal funds rate having fallen below zero