Other things constant, the quantity theory of money concludes that any increase in the quantity of money
A) decreases the demand for money.
B) decreases in the aggregate price level.
C) decreases the aggregate level of nominal income.
D) proportionally increases the price level.
D
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When the value of a currency is determined mostly by demand and supply, but with occasional government intervention, the exchange rate system is defined as
A) floating. B) fixed. C) Bretton Woods. D) managed float.
A decrease in which of the following would decrease the tax wedge?
A) federal budget deficit B) national debt C) money supply D) marginal tax rate
Economic restructuring that takes place as a result of opening to trade with other countries
A) contradicts the idea of gains from trade. B) causes some trading activity to be zero sum. C) worsens the nation's allocation of resources. D) improves the nation's allocation of resources. E) is a highly unlikely event.
When positive externalities are present, it means that:
A. individuals don't take into account all the benefits associated with their market choice. B. society bears part of the cost borne of private transactions. C. individuals consume more than the social optimum. D. All of these statements are true.