Question
The money supply growth increases at time period 0, and interest rates rise immediately. It is possible that Select one: a.liquidity effect is smaller than
The money supply growth increases at time period 0, and interest rates rise immediately. It is possible that
Select one:
a.liquidity effect is smaller than the expected inflation effect and interest rates adjust quickly after changes in expected inflation
b.liquidity effect is larger than the expected inflation effect and interest rates adjust slowly to changes in expected inflation
c.liquidity effect is smaller than the expected inflation effect and interest rates adjust slowly to changes in expected inflation
d.liquidity effect is larger than the expected inflation effect and interest rates adjust quickly to changes in expected inflation
The rate of money supply growth increases at time period 0. Interest rates fall. We can conclude that:
Select one:
a.liquidity effect is larger than the expected inflation effect and interest rates do not adjust to changes in expected inflation in the long-run
b.liquidity effect is smaller than the expected inflation effect and interest rates rise in response to changes in expected inflation
c.liquidity effect is smaller than the expected inflation effect and interest rates adjust quickly to changes in expected inflation
d.liquidity effect is larger than the expected inflation effect and interest rates end up lower than the initial interest rates
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Technology Ventures From Idea To Enterprise From Idea To Enterprise
Authors: Richard C Dorf, Byers
3rd Global Edition
9780071289214
