Question 1

If the quantity of money demanded is greater than the quantity supplied,then the value of money rises.

Accepted Answer

A) True 
 B)False

Question 2

Suppose the price level rises,but the number of dollars you are paid per hour stays the same.This means that your

Accepted Answer

A)   nominal wage is higher.
B)   nominal wage is lower.
C)   real wage is higher.
D)   real wage is lower.E) All of the above
F) A) and B)

Question 3

If velocity = 5,the price level = 1.5,and the real value of output is 2,500,then the quantity of money is

Accepted Answer

A)   333.33.
B)   750.00.
C)   1,050.00.
D)   8,333.33.E) A) and C)
F) A) and B)

Question 4

You bought some shares of stock and,over the next year,the price per share increased by 5 percent,as did the price level.Before taxes,you experienced

Accepted Answer

A)   both a nominal gain and a real gain,and you paid taxes on the nominal gain.
B)   both a nominal gain and a real gain,and you paid taxes only on the real gain.
C)   a nominal gain,but no real gain,and you paid taxes on the nominal gain.
D)   a nominal gain,but no real gain,and you paid no taxes on the transaction.E) C) and D)
F) A) and C)

Question 5

In the 1970s,the U.S.inflation rate reached about

Accepted Answer

A)   7 percent per year.
B)   10 percent per year.
C)   14 percent per year.
D)   20 percent per year.E) A) and D)
F) A) and C)

Question 6

When shopping you notice that a pair of jeans costs $20 and that a tee-shirt costs $10.You compute the price of jeans relative to tee-shirts.

Accepted Answer

A)   The dollar price of jeans and the relative price of jeans are both nominal variables.
B)   The dollar price of jeans and the relative price of jeans are both real variables.
C)   The dollar price of jeans is a nominal variable; the relative price of jeans is a real variable.
D)   The dollar price of jeans is a real variable; the relative price of jeans is a nominal variable.E) B) and D)
F) A) and B)

Exam 22: Money Growth and Inflation

You bought some shares of stock and,over the next year,the price per share increased by 5 percent,as did the price level.Before taxes,you experienced

Correct Answer
verified

If the quantity of money demanded is greater than the quantity supplied,then the value of money rises.

Correct Answer
verified

In the 1970s,the U.S.inflation rate reached about

Correct Answer
verified

Suppose the price level rises,but the number of dollars you are paid per hour stays the same.This means that your

Correct Answer
verified

When shopping you notice that a pair of jeans costs $20 and that a tee-shirt costs $10.You compute the price of jeans relative to tee-shirts.

Correct Answer
verified

If velocity = 5,the price level = 1.5,and the real value of output is 2,500,then the quantity of money is

Correct Answer
verified

Exam 22: Money Growth and Inflation

You bought some shares of stock and,over the next year,the price per share increased by 5 percent,as did the price level.Before taxes,you experienced

Correct AnswerverifiedShow Answer

If the quantity of money demanded is greater than the quantity supplied,then the value of money rises.

Correct AnswerverifiedShow Answer

In the 1970s,the U.S.inflation rate reached about

Correct AnswerverifiedShow Answer

Suppose the price level rises,but the number of dollars you are paid per hour stays the same.This means that your

Correct AnswerverifiedShow Answer

When shopping you notice that a pair of jeans costs $20 and that a tee-shirt costs $10.You compute the price of jeans relative to tee-shirts.

Correct AnswerverifiedShow Answer

If velocity = 5,the price level = 1.5,and the real value of output is 2,500,then the quantity of money is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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