ECON 1BB3 Study Guide - Seigniorage, Deadweight Loss, A56 Road

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orchidmouse779

6 Apr 2014

School

McMaster University

Department

Economics

Course

ECON 1BB3

Professor

Bridget O' Shaughnessy

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ECON 1BB3 Full Course Notes

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___: which of the following is correct? a. b. c. d. If the fed purchases bonds in the open market, then the money supply shifts right. If the fed sells bonds in the open market, then money supply shifts right. A change in the price level does not shift money supply. An increase in the price level shifts money supply right. If the fed purchases bonds, then the money supply shifts right. A decrease in the price level shifts money supply right. In the 1970s in response to recessions caused by an increase in the price of oil, the central banks in many countries increased the money supply. Use the figure below for the following questions. When the money supply curve shifts from ms1 to ms2, a. b. c. d. the equilibrium value of money decreases. the equilibrium price level decreases. the supply of money has decreased. the demand for goods and services will decrease.

Related Questions

When the consumer price index falls from 110 to 100,

a. There is inflation of 9.1%, and the value of money decreases.

b. There is a deflation of 9.1%, and the value of money increases.

c. There is a deflation of 10%, and the value of money increases.

d. There is inflation of 10%, and the value of money decreases.

sangriahyena938

1. During a recession, it is generally the case that output __________ and inflation __________.

a. Rises; Falls

b. Rises; Rises

c. Falls; Falls

d. Falls; Rises

2. The inflation rate is determined by calculating the percentage change of the:

a. Consumer Price Index.

b. Chain price index for GDP.

c. Change in the CPI.

d. Both A and B.

3. Which of the following is NOT included in the CPI?

a. The price of used goods, such as older cars

b. The price of food

c. The price of energy

d. The price of industrial machinery

e. The price of imported consumer goods

4. Those most likely to be hurt by inflation are:

a. Borrowers.

b. Labour unions with COLA clauses.

c. Owners of real estate.

d. Lenders.

e. Owners of precious metals, antiques, and works of art.

whitesquirrel135

a) Assuming that money market equilibrium always exists, if the national price level P increases by 5%, and real money demand L increases by 2%, then the nominal money supply M needs to increase by:

a. decrease by 7%.

b. decrease by 3%.

c. increase by 7%.

d. increase by 3%.

b) A real depreciation of the dollar against the euro occurs when:

a. there is a nominal depreciation of the US dollar against the euro which is at a higher rate than the US inflation rate, regardless of the European rate of inflation.

b. there is a nominal depreciation of the US dollar against the euro which is at a higher rate than the sum of the US inflation rate and the European inflation rate.

c. the cost of the US basket in terms of the European basket (European basket per US basket) rises, where "basket" refers to the basket of goods and services used in a country's price index.

d. there is a nominal depreciation of the US dollar against the euro which is at a higher rate than the European inflation rate, regardless of the US rate of inflation.

e. the cost of the European basket in terms of the US basket (US basket per European basket) rises, where "basket" refers to the basket of goods and services used in a country's price index.

bluecaribou316

ECON 1BB3 Study Guide - Seigniorage, Deadweight Loss, A56 Road

ECON 1BB3 Full Course Notes

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