According to the quantity theory of money, if the money supply increases by 12 percent, then in the long run, prices go:
A. up by less than 12 percent.
B. up by 12 percent.
C. down by 12 percent.
D. up by more than 12 percent.
Answer: B
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A barter arrangement essentially means
A) swapping goods for cash. B) buying with an I.O.U. C) a credit deal. D) a cashless transaction.
Which of the following statements is true?
A) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied. B) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.
Which of the following countries has the highest output per capita?
a. The United Kingdom b. The United States c. France d. Italy e. Germany
A firm that sells at a price below average cost is losing money
a. True b. False Indicate whether the statement is true or false