03. How does a decreasing supply of money and cred ceteris paribus, affect price
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03. How does a decreasing supply of money and cred ceteris paribus, affect prices the purchasing power of money? a) Prices increase and the b ) Prices decrease and the c) Prices increase and the purchasing power of d.) Prices decrease and the purchasing power of money purchasing power of money increases money increases purchasing power of money decreases 04. How does an increasing supply of money and credit. the purchasing power of money ceteris paribus, affect prices and y decreases eases b) Prices decrease and the purchasing power of money incre c.) Prices increase and the purchasing power of money increases. d.) Prices decrease and the purchasing power of money decreases 05. Which famous economist authored (that is, formulated) the Origin of Money Theory? a) Carl Menger b.) Adam Smith c.) William Stanley Jevons d.) Leon Walras 06. Indirect exchange, by definition, a.) is the same as direct exchange b Dinvolves the interposition of a medium of exchange. c.) involves equal valuations of the participants in exchange d.) is a term first coined by economist William Stanley Jevons From the perspective of evolutionary economics the most important social institution in modern civilization is: 07. a.) government. b.) the Rule of Law. c.) money d the social division of labor. 1.OoO 08. When an inflation of prices occurs, creditors and debtors 1,100 a.) both are hurt. both benefit. c.)creditors lose and debtors win creditors win and debtors lose. 09. The three variables influencing the demand for money the most are: * a.) population, extension of the social division of labor, and extension of t vb.) population, the recurrence of the business cycle, an increase in the c.) population, the recurrence of the business cycle, and an extensiorn (d)population, extension of the social division of labor and electron market order over the surface of the earth. holidays in the calendar year period during major holidays.Explanation / Answer
3) The correct answer is "B". decreasing the supply of money and Credit decreases the price and increase the purchasing power of the money. A decrease in money supply causes the interest rates to rise thereby decreasing investment in the economy which brings the demand down and decreases the price and raises the purchasing power.
4) The correct answer to this question is "A" an increase in money supply brings the interest rates down, raise investment, and demand thereby increasing prices and lowering the purchasing power.
5) Correct answer "A" Carl Menger authored origin of the money supply.
6) Correct answer "B" indirect exchange means using a rate between to exchange the foreign currency and local currency.
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