According to the crude quantity theory of money, if P rose by 20%, then __________.
Fill in the blank(s) with the appropriate word(s).
M will rise by 20%
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What area in the above figure is the producer surplus at the efficient quantity?
A) A B) A + B + C C) F D) D + E + F
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal. How much would the government have to pay farmers?
A. $1.5 billion B. $3 billion C. $4.5 billion D. $18 billion
Gross national product is equal to:
a. gross domestic product b. net national product plus depreciation. c. national income plus net personal income. d. none of the above
If the expenditure multiplier is 10 and investment spending decreases by $1,000 billion, what will be the change in GDP?
a. -$10,000 b. $2,500 c. $1,000 d. $10,000 e. -$1,000