3. The classical dichotomy and the neutrality of money The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Poornima spends all of her money on magazines and donuts. In 2015, she earned $27.00 per hour, the price of a magazine was $9.00, and the price of a donut was $3.00. Which of the following give the nominal value of a variable? Check all that apply. O The price of a donut is $3.00 in 2015. O Poornima's wage is $27.00 per hour in 2015. O The price of a donut is 0.33 magazines in 2015. Which of the following give the real value of a variable? Check all that apply. O The price of a magazine is 3 donuts in 2015. O Poornima's wane

21.According to the quantity theory of money, ultimate control over the rate of inflation in the United States is exercised by: A)the Organization of Petroleum Exporting Countries (OPEC). B)the U.S. Treasury. C)the Federal Reserve. D)private citizens. 22.According to the quantity theory of money, if money is growing at a 10 percent rate and real output is growing at a 3 percent rate, but velocity is growing at increasingly faster rates over time as a result of financial innovation, the rate of inflation must be: A)increasing. B)decreasing. C)7 percent. D)constant. 23.If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change in real GDP must be ______ percent. A)3 B)4 C)9 D)11 24.Percentage change in P is approximately equal to the percentage change in: A)M. B)M minus percentage change in Y. C)M minus percentage change in Y plus percentage change in velocity. D)M minus…

please dont make a humungous run on paragraph of an answer/explanation I need to know what I'm reading    And answer as soon as possible

how might this change in interest rates and the supply of money affect the value of money? What happens in the circular-flow-diagram if borrowing money becomes expensive for businesses and consumers? What happens to employment?

QUESTION 3 When a customer takes cash from a drawer in his home and deposits it into his saving account, the composition of the money supply will change immediately and the size of the money supply may eventually change. Illustrate and explain the process by which this action may change the money supply in economy. ***END OF QUESTION PAPER*** States) E Accessibility: Investigate

Currency in Circulation (October 2020) 40.5 billion Nigerian currency Reserves (October 2020) 34.2 billion Nigeriancurrency M1 (October 2020) 2,465.9 billion Nigeriancurrency M2 (October 2020) 2,638.8 billion Nigeriancurrency Calculate the size of the actual money (M2) multiplier in October 2020.  Round your answer to one decimal place.   Nigeria's central bank, N. Bank, has not set a required reserve ratio (you can treat the required reserve ratio as 0%).  Calcuate the excess reserve ratio for Norway in October 2020.  Enter your answer in percent form without the percent sign.  Round to one decimal place.

Which of the following statements relates to the Unit of Account function of money? O Money facilities lending and borrowing. O Money allows individuals and households to save income. O Money allows us to list a single monetary price for goods and services. O Money solves the double coincidence of wants.

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Complete of the following sentences (fill in the blanks): A product that serves both as money and as a commodity is ________________. Some coins and all papers money circulating in the US have face values that exceed the value of the materials from which they are made. Therefore, they are forms of ______________. If the government declares that creditors must accept a form of money as payment for debts, the money becomes _____________. A common unit for measuring the value of every good or service in the economy is knowns a(n) __________________.