2024 CFA Level I Exam: CFA Discussion Topic: Keynesian nonsense

Author	Topic: Keynesian nonsense
Fiorina @2015-04-25 14:55:23	A practice question: In the short run, will an increase in money supply increase the price level and real output? a. both will increase b. neither will increase c. only one will increase They say A. This is nonsense. If I print money, and prices rise. My real consumption is the same. This is complete garbage.
bmukushev @2015-05-16 19:58:17	Why do you think this is garbage? It?s not your consumption that is the issue. It?s that in the short run you get MV = PQ son increasing M increases P and/or Q. At least in normal times. Right now, it just drops V some more.

To post a new topic or reply to a topic, please log in or register for a free user account.

I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!