According to the equation of exchange, changes in the money supply can affect:
A. only the velocity of money.
B. both the price level and real output.
C. only real output and employment.
D. only the price level.
B. both the price level and real output.
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With eminent domain, landowners ________ in the gains that result from the taking of their property, and with private bargaining, landowners ________ in the gains that result from the taking of their property
A) share; share B) share; do not share C) do not share; share D) do not share; do not share
Which of the following statements about the price elasticity of demand is correct?
A) The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. B) Demand is more elastic in the long run than it is in the short run. C) The absolute value of the elasticity of demand ranges from zero to one. D) Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.
Dynamic tax analysis assumes
A) all of the present tax rates will be in place for a minimum of twenty years. B) changes in the tax rates have no effect on the tax base. C) changes in the tax rates have no effect on tax revenue. D) changes in the tax rates will change the tax base.
David sells Sno-cones and uses the money earned to buy pizzas. Last year Sno-cones sold for $1 each, and pizzas were $10 each. This year David finds that he can only charge $0.50 per Sno-cone, but that the price of a pizza has climbed to $12. a . If
David asks the government to intervene to maintain his purchasing power, what price would the government have to set for Sno-cones? Explain. b. How would the new, government-imposed Sno-cone price affect the Sno-cone market?