According to the quantity theory of money and prices, a 10 percent increase in the money supply ultimately leads to
A. a 10 percent increase in wages.
B. a 10 percent increase in real Gross Domestic Product (GDP).
C. a 10 percent increase in the price level.
D. a 10 percent decrease in velocity.
Answer: C
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The supply curve for high-skilled labor lies to the
A) right of the supply curve for low-skilled labor because more people want a high-skilled job. B) left of the supply curve for low-skilled labor because more people want a high-skilled job. C) left of the supply curve for low-skilled labor because it is costly to acquire skills. D) right of the supply curve for low-skilled labor because fewer high-skilled people are willing to work for a low wage.
Does inflation always cause workers losses due to decreases in real wages? Why or why not?
When an economy is not using all of its resources, it is producing at a point below its production possibilities frontier
Indicate whether the statement is true or false
The largest source of federal revenue is the corporate income tax.
Answer the following statement true (T) or false (F)