equilibrium. The government of MankiwVille, in consultation with the country's central bank, subsequently announced in February that, with immediate effect, credit cards are considered illegal and may no longer be used when making purchases. The demand for money in MankiwVille has subsequentlyand the velocity of money If MankiwVille's central bank keeps the money supply constant, in the short run the price level will In the long run, the price level will Select one: a. increased; decreased; remain unchanged; decrease b. decreased; increased; remain unchanged; decrease c. decreased; increased; decrease; remain

equilibrium. The government of MankiwVille, in consultation with the country's central bank, subsequently announced in February that, with immediate effect, credit cards are considered illegal and may no longer be used when making purchases. The demand for money in MankiwVille has subsequentlyand the velocity of money If MankiwVille's central bank keeps the money supply constant, in the short run the price level will In the long run, the price level will Select one: a. increased; decreased; remain unchanged; decrease b. decreased; increased; remain unchanged; decrease c. decreased; increased; decrease; remain

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 1CQQ

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