According to the quantity theory of money, velocity
A. is constant.
B. is proportional to the price level.
C. is positively related to the real interest rate.
D. increases with nominal income.
Answer: A
You might also like to view...
In the above figure, a price floor of $4
A) leads to a shortage. B) leads to a surplus. C) has no effect. D) shifts the demand curve leftward.
A fair coin is flipped. If it lands heads the person receives $1.00. If it lands tails, the person receives $11.00. If the person is willing to pay $6.00 to take this gamble, they must be
a. risk-averse. b. risk-neutral. c. risk-preferring. d. either risk-neutral or risk-preferring (not risk-averse).
The scientific method is the dispassionate development and testing of theories about how the world works
a. True b. False Indicate whether the statement is true or false
An effective price floor results in a shortage.
Answer the following statement true (T) or false (F)