According to the simple quantity theory of money, a change in the money supply of 9.6 percent would lead to a
a. 9.6 percent change in velocity.
b. 9.6 percent change in real GDP.
c. 9.6 percent change in nominal GDP.
d. 9.6 percent change in aggregate supply.
c
You might also like to view...
If the CPI is currently 202, what does this tell you about inflation between last year and this year?
A) Inflation in the economy between this year and last year was 2%. B) There was deflation in the economy between this year and last year. C) The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next. D) Inflation in the economy between this year and last year was 102%.
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption, and government spending remains the same and Alpetra is a closed economy, what is the change in investment?
a. $50 million b. $100 million c. No change d. Cannot be determined from the information given
Which of the following statements is false?
A) Specialization and trade allow a country's inhabitants to consume at a level beyond its production possibilities frontier. B) Some of the goods the U.S. exports include cars, coal, and wheat. C) Some of the goods the U.S. imports include cars, oil, and coffee. D) A country has a comparative advantage in producing that good it can produce at lower opportunity cost than another country. E) none of the above
A firm ________ in the short-run has an incentive to expand its long-run scale of operation.
A. breaking even B. earning positive profits C. making a loss D. that shuts down