According to crude versions of the quantity theory of money
A. the income velocity of money is highly variable in the short run.
B. a full employment rate of output is not characteristic of market equilibrium.
C. a 10-percent increase in the money supply will result in a 10-percent increase in the price level.
D. a 25-percent decrease in the money supply will result in a 25-percent decrease in velocity.
C. a 10-percent increase in the money supply will result in a 10-percent increase in the price level.
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Which of the following will result in the money market when the price level in an economy rises, while the supply of money remains unchanged? a. The demand for money will decrease
b. The supply of money will increase. c. The rate of interest will decrease. d. The total investment spending in the economy will increase. e. The rate of interest will increase.
Rapid economic growth:
A. is a modern phenomenon, happening only in the last century or two. B. has happened in various places around the world since the 1300s. C. has occurred since 1500, but backsliding has prevented real growth. D. is a modern phenomenon, happening only this year.
The factors of production are best defined as the
a. output produced from raw materials. b. inputs used to produce goods and services. c. wages paid to the workforce. d. goods and services sold in the market.
The U.S. inflation adjusted poverty threshold in 2014 was set at $35,000 per year for a family of four.
Answer the following statement true (T) or false (F)