What happens to the price level if the money supply declines

Reference no: EM13238214

If velocity and aggregate output remain constant at 10 and 2,000, respectively, what happens to the price level if the money supply declines from $800 billion to $600 billion?

Reference no: EM13238214

Questions Cloud

What is the value of q : A charge of +45.9 C is at the origin. When charge Q is placed at 2 m along the positive x axis, What is the value of Q

How much is result in an increase in consumption or spending : MPS= 40 with no government and no foreign trade a 10 billion dollar increase in investment will enventually result in an increase in consumption or spending and how much

Explain heated with bromine and aqueous sodium hydroxide : Compound E was heated with bromine and aqueous sodium hydroxide to give compound F (C7H9N). Compound F was treated with cold sodium nitrite and an excess of hydrochloric acid a colorless gas was evolved, and when the resulting liquid reaction mixt..

How much force does each jaw exert on the nut : A nut is held in the jaws of a pair of pliers. The nut is 25 mm from the pivot of the pliers and a force of 10 N is applied to each handle 150 mm from the pivot

What happens to the price level if the money supply declines : If velocity and aggregate output remain constant at 10 and 2,000, respectively, what happens to the price level if the money supply declines from $800 billion to $600 billion

Does social security provide the elderly with an improvement : Social Security benefits are increased each year in proportion to the increase in CPI, even though most economists believe that the CPI overstates actual inflation. If the elderly consume the same market basket as other people.

Define what is the volume of air in the tank at stp : A compressed air tank carried by scuba divers has a volume of 7.0 L and a pressure of 150 atm at 20C. What is the volume of air in the tank (in liters) at STP

How does perfect competition in farming industry help farmer : Does farming in the United States have the characteristics of perfect competition How does perfect competition in the farming industry help farmers and consumers or Hurt farmers and consumers

Explain the equilibrium lies with the products : For the following reaction, denote whether the equilibrium lies with the products or with the reactants.2NO2(g) + 02(g) 2NO2 (g) Kp = 5.0*1012

User Account

All Pages