Please answer the following! Thanks :) 7. (02.05 MC)Which of the following options likely to happen when a country is experiencing a high inflation rate?Shoe leather costs fall.(Investment level rises.O Real value of money falls.Nominal interest rates fall.Real value of money stock rises.8. (05.03 MC)Assume that an economy is characterized by its efficient use of available human resources. The central bank of this economy enacted the expansionary monetary policy that influences the available money supply. Which of the following is true in this scenario? (1A decrease in the money supply will increase the price level, but the output will decrease.O An increase in the money supply will increase the price level, but the output will remain unaffected.An increase in the money supply will decrease the price level, but the output will increase.A decrease in the money supply will increase the price level, but the output will remain unaffected.An increase in the money supply will decrease the price level, but the output will remain unaffected.9. (03.08 MC)Which of the following fiscal policy actions is taken by the government to eliminate inflationary gap in the economy?Decreasing taxes and increasing government purchases of goods and servicesO Decreasing government purchase of goods and services and increasing taxesO Increasing government spending and taxesO Increasing government spending and decreasing transfer paymentsO Increasing government transfer payments and decreasing taxes

The measure that depicts a general rise in the level of goods and services over a given period of…

Which of the following options is likely to happen when a country is experiencing a high inflation rate? Shoe leather costs fall. Investment level rises. Real value of money falls. Nominal interest rates fall. O Real value of money stock rises.

Which of the following options is likely to happen when a country is experiencing a high inflation rate? Shoe leather costs fall. Investment level rises. Real value of money falls. Nominal interest rates fall. O Real value of money stock rises.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 8PA

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Question

Please answer the following! Thanks :)

7. (02.05 MC)
Which of the following options likely to happen when a country is experiencing a high inflation rate?
Shoe leather costs fall.
(Investment level rises.
O Real value of money falls.
Nominal interest rates fall.
Real value of money stock rises.
8. (05.03 MC)
Assume that an economy is characterized by its efficient use of available human resources. The central bank of this economy enacted the expansionary monetary policy that influences the available money supply. Which of the following is true in this scenario? (1
A decrease in the money supply will increase the price level, but the output will decrease.
O An increase in the money supply will increase the price level, but the output will remain unaffected.
An increase in the money supply will decrease the price level, but the output will increase.
A decrease in the money supply will increase the price level, but the output will remain unaffected.
An increase in the money supply will decrease the price level, but the output will remain unaffected.
9. (03.08 MC)
Which of the following fiscal policy actions is taken by the government to eliminate inflationary gap in the economy?
Decreasing taxes and increasing government purchases of goods and services
O Decreasing government purchase of goods and services and increasing taxes
O Increasing government spending and taxes
O Increasing government spending and decreasing transfer payments
O Increasing government transfer payments and decreasing taxes

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