In the classical theory of aggregate demand, a decrease in the velocity of money leads to
a. a downward shift in the aggregate demand curve, a fall in prices, and no change in output.
b. an increase in the aggregate demand curve, a rise in prices, and no change in output.
c. no change in aggregate demand or supply because higher velocity increases the money supply.
d. an upward shift in the aggregate demand curve, a fall in prices, and no change in output.
A
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A) negative; positive B) positive; zero C) positive; negative D) positive; positive E) negative; negative
The exchange rate: a. states the price of one currency in terms of another currency
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A. macroeconomics. B. microeconomics. C. both macroeconomics and microeconomics. D. neither macroeconomics nor microeconomics.
Which of the following is not trueconcerning the indifference map?
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