What is the likely effect on inflation when a central bank increases the money supply rapidly? A. Inflation will decrease. B. Inflation will remain stable. C. Inflation will increase. D. Inflation will first decrease, then increase.

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In the short run, expansionary monetary or fiscal policy is expected to O increase; decrease. inflation and output. increase; increase. decrease; decrease. O decrease; increase.

1. What are the main reasons that the U.S. inflation surged last year? 2. What is the monetary policy the Fed (central bank of the U.S.) uses to control inflation? 3. How did the monetary policy cause the bankruptcy of Silicon Valley Bank?

Money neutrality is the idea that a. any policy can have intended and unintended consequences b. in the long-run, markets will clear and return the economy to equilibrium regardless of what happens to the money supply. c. there are two types of variables, nominal and real, and only nominal variables are affected by the money supply. d. nominal and real interest rates are unrelated.   During the middle of the 20th century, income inequality in developed economies generally fell. The reason for this was a. average incomes didn't rise but welfare systems redistributed income.  b. that returns to assets held by high income earners fell steadily. c. incomes overall rose but taxation systems were slowly made more and more progressive. d. a rise in average income with incomes of the bottom deciles rising faster than the top.

Money demand is likely to increase the most during which part of the business cycle? A. peak B. recession C. contraction D. trough E. recovery

What do monetarists predict will happen in the short run and in the long run as a result of each of the following? (In each case assume the economy is currently in long-run equilibrium). (a) Velocity rises. (b) Velocity falls. (c) The money supply rises. (d) The money supply falls.

What do monetarists predict will happen in the short run and in the long run as a result of each of the following? (In each case, assume the economy is currently in long-run equilibrium).(a) Velocity rises. (b) Velocity falls.(c) The money supply rises. (d) The money supply falls.

Increases in the rate of inflation Select one: a. Always coincide with a decrease in the unemployment rate b. Are more pronounced in periods of recession c. Generally are inversely related to the output gap d. Generally do not occur in periods of high growth in money supply

The Fed increases the amount of OMO purchases: a)Inflation increases b)Inflation decreases c)Inflation stays the same d)Can't tell