According to the quantity theory of money, if the growth rate of money supply is 6% and the growth rate of real GDP is 9%, then the growth rate of nominal GDP in the economy will be:
A) 9%. B) 6%. C) 3%. D) 15%.
B
You might also like to view...
When economists state that the opportunity cost of a product increases as more of it is produced, what do they mean? What is the opportunity cost?
What will be an ideal response?
Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or 1 computer in an hour. The opportunity cost of 20 cameras in terms of computers in Germany is
A) 10 computers per camera. B) 2 computers per camera. C) 1 computer per camera. D) 1/20 of a computer per camera.
An economic model is a realistic depiction of the operation of the economy.
Answer the following statement true (T) or false (F)
Price leadership is a form of
A. tacit collusion. B. explicit collusion. C. monopolistic competition. D. a cartel policing mechanism.