If the propensity to hold money is 6 and the money supply is 12, then the classical aggregate demand curve is
A) P = 2Y
B) P/Y = 48
C) P = 1/(2Y)
D) P = 2/Y
According to the classical model, a 10-percent increase in the money supply, holding everything else constant, will lead to
A) A 10% increase in prices, a 10% increase in the real wage, and a 10% increase in interest rates.
B) A 10% increase in prices, a 10% increase in the money wage, and a 10% increase in interest rates.
C) A 10% increase in prices, a 10% increase in the money wage, and no change in interest rates.
D) A 10% increase in prices and no change in the money wage or interest rates.
None of the above.