An assumption used in the quantity theory of money is that
A) velocity is constant.
B) the money supply is constant.
C) nominal Gross Domestic Product (GDP) is constant.
D) the price level is constant.
A
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The figure above shows Sam's budget line. Which of the following formulas represents Sam's budget equation?
A) $60.00 = $1.50/Qg + $3.00/Qc B) $60.00 = Qg /$1.50 + Qc /$3.00 C) $60.00 = $1.50(Qg) + $3.00(Qc) D) $60.00 = $1.50(Qg) - $3.00(Qc)
If renting videos is an inferior good, demand for this service will rise when consumer income falls
a. True b. False Indicate whether the statement is true or false
The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by: a. the shape of the short-run industry supply curve. b. the price of inputs as the industry expands
c. the price elasticity of market demand. d. the shape of the average fixed cost curve.
Other things the same, continued increases in the money supply lead to
a. continued increases in the price level and real GDP. b. continued increases in the price level but not continued increases in real GDP. c. continued increases in real GDP but not continued increases in the price level. d. a one-time permanent increase in both prices and real GDP.