According to the equation of exchange, if real output and the money supply stay the same and the price level increases:
A. nominal GDP remains constant.
B. the velocity of money has to increase.
C. the velocity of money has to decrease.
D. the real GDP had to rise.
Answer: B
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If the current quantity demanded of John Deere tractors is 50,000 tractors, and the quantity supplied is 75,000 tractors, then
A) there is a shortage of 25,000 tractors. B) there is a surplus of 25,000 tractors. C) there is a shortage of 125,000 tractors. D) there is a surplus of 125,00 tractors.
The German inflation rate after World War I was measured in the thousands of percents. This condition is referred to as
a. fundamental inflation. b. environmental inflation. c. hyperinflation. d. episodic inflation.
The demand curve for federal funds is ________.
A. vertical B. upward-sloping C. downward-sloping D. horizontal
In the long run, a decrease in aggregate demand will lead to a(n) _____
Fill in the blank(s) with the appropriate word(s).