Economists who accept the quantity theory of money believe that inflation is always and everywhere a monetary phenomenon.
Answer the following statement true (T) or false (F)
True
According to the equation of exchange, MV=PQ. The quantity theory of money argues that V is constant and Q is independent of money supply, so that only changes in the money supply lead to inflation.
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The Black Ash Steel Company's plant belches large quantities of noxious fumes and black ash into the air. Residents in the surrounding area have higher medical bills because of Black Ash's pollution
If the firm is forced to pay the social costs of its production A) the amount of steel it produces will increase in order to pay the additional costs. B) the price it charges for its steel will decrease. C) its supply curve will shift to the right. D) it will produce less and charge more for its steel.
Interpret what an increase in demand and an increase in supply mean. Discuss the causes of an increase in demand and an increase in supply. How are increases in demand and supply expressed graphically?
The type of good that is most likely to be subject to market failure is:
A. a public good. B. an uncommon resource. C. a factor of production D. a private good.
Which of the following is the best explanation for why individuals own small businesses?
A. To gain experience for their next job. B. Because they cannot earn a living working for corporate America. C. The expectation of profit. D. To provide a product consumers want.