Author Question: If an increase in the level of the money supply results in a proportionate increase in prices with ... (Read 32 times)

daltonest1984 · **on:** Jun 30, 2018

If an increase in the level of the money supply results in a proportionate increase in prices with no effect on any real variables, we say that

A) the Fisher relationship holds.
B) money is neutral.
C) money is superneutral.
D) money is the most preferred store of value.

Question 2

A call option is said to be in the money if

A) it is written on a Treasury bill or other money-market asset.
B) it has increased in price since it was first written.
C) the price of the underlying asset is currently greater than the strike price.
D) the price of the underlying asset is currently greater than the strike price plus the option premium.