Question 3 If money is neutral and velocity is stable, what does an increase in the money supply create a proportional increase in? the price level both real and nominal interest rate inflation rate real output Which of the following do shoe leather costs of inflation refer to? the distortion in incentives created by inflation by taxes that do not adjust for inflation the distortion in resource allocation created by distortions in relative prices due to inflation resources used to maintain lower money holdings when inflation is high the cost of more frequent price changes induced by higher inflation Suppose Canada buys $300 of carrots from the U.S.A., and the U.S.A. buys $130 of cauliflower from Canada. Which of the following correctly indicates the two countries' net exports (in the order Canada, U.S.A.)? $170, -$170 $300, $130 $430. S0

Question 3 If money is neutral and velocity is stable, what does an increase in the money supply create a proportional increase in? the price level both real and nominal interest rate inflation rate real output Which of the following do shoe leather costs of inflation refer to? the distortion in incentives created by inflation by taxes that do not adjust for inflation the distortion in resource allocation created by distortions in relative prices due to inflation resources used to maintain lower money holdings when inflation is high the cost of more frequent price changes induced by higher inflation Suppose Canada buys $300 of carrots from the U.S.A., and the U.S.A. buys $130 of cauliflower from Canada. Which of the following correctly indicates the two countries' net exports (in the order Canada, U.S.A.)? $170, -$170 $300, $130 $430. S0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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