If the simple quantity theory of money predicts well, what would we expect to see (in the real world)?
A) changes in the money supply strongly correlated with changes in interest rates
B) changes in the money supply strongly correlated with changes in inflation rates
C) changes in Real GDP strongly correlated with changes in the money supply
D) changes in velocity strongly correlated with changes in the money supply
E) none of the above
B
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Indicate whether the statement is true or false
If a nation has “cheap labor,”
A. it can still benefit from trade. B. other nations can still compete with it. C. it cannot have a comparative advantage in everything. D. All of the above are true.
If marginal cost is increasing, then average total cost must be increasing simultaneously.
Answer the following statement true (T) or false (F)
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Indicate whether the statement is true or false