The quantity equation implies that any decrease in the money supply has to lead directly to:
A. a decrease in P.
B. an increase in Y.
C. a decrease in Y.
D. an increase in P.
Answer: A
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When people expect their income to be lower in the future, they will be:
A. more inclined to save. B. less inclined to save. C. unaffected in their present choices. D. People only react and change their savings decisions based on recent history.
Macroeconomics involves the study of the decision-making of individual firms or individuals.
Answer the following statement true (T) or false (F)
Manufacturers produce only what the market is willing to pay for.
Answer the following statement true (T) or false (F)
The total sum of squares equals the sum of squares of the variation explained by the regression and the sum of squares of the errors
Indicate whether the statement is true or false