This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If an increase in the level of money supply leads to a proportionate increase in prices with no ... (Read 66 times)

ts19998

  • Hero Member
  • *****
  • Posts: 531
on: Jun 30, 2018
If an increase in the level of money supply leads to a proportionate increase in prices with no effect on real variables ,we say that
 
  A) the Fisher relationship holds.
  B) money is neutral.
  C) money is superneutral.
  D) money is a medium of exchange.

Question 2

What is the meaning of animal spirits? How do these relate to planned investment spending and to unplanned investment spending?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

uniquea123

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

Animal spirits are emotional waves of optimism and pessimism. They influence autonomous investment, changing the amount of planned investment at any real interest rate. They impact unplanned investment, as well, since each firm's planned investment expenditures are, typically, purchases from other firms. A sudden change from optimism to pessimism will leave businesses with unsold inventory, an increase in inventory investment. Unplanned negative inventory investment results from a change from pessimism to optimism.


ts19998

  • Hero Member
  • *****
  • Posts: 531
Reply #2 on: Jun 30, 2018
Thank you :)


uniquea123

  • Sr. Member
  • ****
  • Posts: 311
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

The FDA recognizes 118 routes of administration.

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.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Single-gene inheritance tracked at the DNA level Single-gene inheritance tracked at the DNA level
supply chain supply chain
When using forearm pressure on the top of the shoulder, push with your back foot to increase your ... When using forearm pressure on the top of the shoulder, push with your back foot to increase your ...
The level in the coolant recovery system raises and lowers with engine temperature. The level in the coolant recovery system raises and lowers with engine temperature.
Surface Fronts and Upper-Level Patterns: Cold Fronts and the Formation of Upper-Level Troughs Surface Fronts and Upper-Level Patterns: Cold Fronts and the Formation of Upper-Level Troughs
Muscle structure seen at the EM level Muscle structure seen at the EM level
Video: Photosynthesis overview Animation

For a complete list of videos, visit our video library