Question 5 - Policy Questions 1) If the rate of money growth increases, in the long run money demand should decline. True, false, or uncertain 2) According to the quantity theory of money, if the government suddenly stops printing money (i.e. reduces money growth to zero), the price level should drop. True, false, or uncertain. 3) In the short run, a tax cut will increase output and private saving. True, false, or uncertain? Discuss making reference to the IS-LM model

Question 5 - Policy Questions 1) If the rate of money growth increases, in the long run money demand should decline. True, false, or uncertain 2) According to the quantity theory of money, if the government suddenly stops printing money (i.e. reduces money growth to zero), the price level should drop. True, false, or uncertain. 3) In the short run, a tax cut will increase output and private saving. True, false, or uncertain? Discuss making reference to the IS-LM model

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Monetary Theory And Policy

Section: Chapter Questions

Problem 3.7P

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