Answer: Increases the price level by 5 percent
Explanation:
Monetary Neutrality is a theory in Economics that posits that when there is a change in money supply in an economy, the only variables affected are the nominal ones like price level and wages and Real variables like GDP and employment are not affected.
It holds that when there is an increase in money supply, there is an equivalent increase in Price level as well because the value of money has fallen by the rate of the monetary increase. The Price level rising at the same rate is to compensate.
A 5 percent increase in the money supply will therefore increase the price level by 5 percent.
Answer:
It depends on a number of things. The quality of the product, the reviews of the product, or maybe just to feel cool.
Answer:
1-The federal government increases spending on rebuilding the New Jersey shore following a hurricane. This is an example of an automatic stabilizer.
2- The Federal Reserve sells Treasury securities. This is an example of a discretionary fiscal policy.
3- The total the federal government pays out for unemployment insurance decreases during an expansion. This is an example of not a fiscal policy.
4- The federal government changes the required gasoline mileage for new cars. This is an example of an automatic stabilizer.
5- Congress and the president enact a temporary cut in payroll taxes. This is an example of a discretionary fiscal policy.