Author Question: With money supply shocks in the intertemporal model with money, the price level is A) ... (Read 110 times)

jilianpiloj · **on:** Jun 30, 2018

With money supply shocks in the intertemporal model with money, the price level is

A) procyclical.
B) acyclical.
C) countercyclical.
D) somewhat cyclical.

Question 2

Under a fixed exchange rate system, at high domestic real interest rates the demand for domestic currency ________, so the central bank ________ foreign-exchange reserves.

A) increases; acquires
B) increases; loses
C) decreases; acquires
D) decreases; loses