Question 1 Value of Money MS, MS, 2 Money Demand 1 Quantity of Money If the Money Supply is MS, and the value of money is 2, which relationship holds? The value of money is less than its equilibrium level. ) The money supply is greater than money demand. The price level is higher than its equilibrium level. The money demand is greater than the money supply.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Question 1
Value of
Money
MS,
MS
Money
Demand
Quantity of
Money
If the Money Supply is MS, and the value of money is 2, which relationship holds?
The value of money is less than its equilibrium level.
| The money supply is greater than money demand.
The price level is higher than its equilibrium level.
The money demand is greater than the money supply.
A decrease in the Money Supply will NOT change which of the following, according to the principle of monetary
neutrality?
nominal GDP
the nominal wage rate
labour productivity
the price level
Transcribed Image Text:Question 1 Value of Money MS, MS Money Demand Quantity of Money If the Money Supply is MS, and the value of money is 2, which relationship holds? The value of money is less than its equilibrium level. | The money supply is greater than money demand. The price level is higher than its equilibrium level. The money demand is greater than the money supply. A decrease in the Money Supply will NOT change which of the following, according to the principle of monetary neutrality? nominal GDP the nominal wage rate labour productivity the price level
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