Please answer all 3 thank you!! Other things being equal, an increase in the sup
ID: 1173946 • Letter: P
Question
Please answer all 3 thank you!!
Other things being equal, an increase in the supply of money
Question 46 options:
increases the price level.
reduces aggregate demand.
generates significant changes in relative prices.
reduces the amount of money balances.
As global financial markets become more intertwined, the Fed has
Question 47 options:
more control over fiscal policy.
less control over monetary policy.
more control over monetary policy.
less control over fiscal policy.
According to the quantity theory of money,
Question 48 options:
the velocity of money is the least stable factor in monetary analysis.
a change in the money supply can lead only to a proportionate change in the price level.
price level changes can best be explained by Keynesian analysis.
the rate of inflation is not related to changes in the money supply.
increases the price level.
reduces aggregate demand.
generates significant changes in relative prices.
reduces the amount of money balances.
As global financial markets become more intertwined, the Fed has
Question 47 options:
more control over fiscal policy.
less control over monetary policy.
more control over monetary policy.
less control over fiscal policy.
According to the quantity theory of money,
Question 48 options:
the velocity of money is the least stable factor in monetary analysis.
a change in the money supply can lead only to a proportionate change in the price level.
price level changes can best be explained by Keynesian analysis.
the rate of inflation is not related to changes in the money supply.
Explanation / Answer
46) Correct answer is increases the price level. This follows the quantity theory of money where money supply increases the price level when aggregate supply is upward sloping or is vertical
47) Correct answer is less control over monetary policy. Globalization has resulted in policies such as begger thy neighbour where other nations can influence the domestic economic environment making it difficult for the Fed to control money supply
48) Correct answer is a change in the money supply can lead only to a proportionate change in the price level. It is mentioned in 46) that the two are directly related.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.