According to the quantity theory of money, in the long run, an increase in the quantity of money does not change real GDP but does raise the price level
Indicate whether the statement is true or false
TRUE
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President Obama's stimulus package in 2009 included
A) new tax cuts but no change in government spending. B) tax increases and decreases in government spending. C) increases in government spending but no change in taxes. D) new tax cuts and increases in government spending.
Depositors lack of information about the quality of bank assets can lead to
A) bank panics. B) bank booms. C) sequencing. D) asset transformation.
Automatic stabilizers do not include
a. taxes b. interest rates c. transfer payments d. forward-looking behavior e. enhancing the multiplier effect
When the cost curves have the usual shapes, at the point where marginal cost equals average total cost,
a. average total cost is at its maximum b. marginal cost is falling c. average total cost is at its minimum d. average variable cost is falling e. the fixed cost has been fully depreciated