One assumption that changes the equation of exchange into the quantity theory of money is:
A. real output varies with the money supply.
B. velocity remains constant.
C. price times quantity equals nominal output.
D. expectations change with inflation.
Answer: B
You might also like to view...
The real wage will rise if the nominal wage
A. increases more rapidly than the prices of the goods and services it buys. B. falls at the same rate as the general price level. C. falls more rapidly than the prices of the goods and services it buys. D. increases at the same rate as labor productivity.
The productivity slowdown in the U.S. can be explained by geographic limitations and instability in the government
a. True b. False Indicate whether the statement is true or false
When we add private benefits and external benefits together, the result is called:
A. public costs. B. network benefits. C. production benefits. D. social benefits.
The change in total welfare from a 10% increase in price will depend only on the elasticity of demand
Indicate whether the statement is true or false