According to the simple quantity theory of money, a change in the money supply of 9.6 percent would lead to a
A. 9.6 percent change in velocity.
B. 9.6 percent change in real GDP.
C. 9.6 percent change in nominal GDP.
D. 9.6 percent change in aggregate supply.
Answer: C
You might also like to view...
What is the shape of the total revenue curve derived from a linear downward sloping demand curve?
A) Horizontal B) Vertical C) U-shaped D) Inverted u-shaped
The marginal income tax rate is equal to
A) the total tax payment divided by total income. B) the change in the tax payment divided by the change in income. C) the average tax payment divided by the total tax payment. D) the percent of total income that goes to taxes.
Generally, the supply of a resource in the short run will be
a. more elastic than in the long run. b. less elastic than in the long run. c. equally elastic as the supply of the resource in the long run. d. directly related to the elasticity of demand for the product that the resource helps produce.
Suppose you have $2000 in currency in a shoebox in your closet. One day, you decide to deposit the money in a checking account. How will this action affect the M1 and M2 definitions of the money supply?
A. Both M1 and M2 will remain unchanged B. M1 will decrease and M2 will increase C. Both M1 and M2 will increase by $2000