According to the equation of exchange, if velocity and real GDP do not change, a 3 percent increase in the quantity of money
A) raises the price level by 3 percent.
B) raises the price level by 3 ÷ (velocity).
C) raises the price level by less than 3 percent.
D) lowers the price level by 3 ÷ (real GDP).
E) lowers the price level by 3 percent.
A
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At the equilibrium price of a good, the good will be sold by those sellers
a. whose cost is more than price. b. whose cost is less than price. c. that can produce the good. d. enter the market first.
When the supply of labor increases, according to the specificfactors model, which of the following is NOT likely to happen?
a. The number of workers employed will increase. b. The wages for workers will decline. c. The marginal product of labor shifts to the right. d. The overall wage in the economy increases in the short run.
If the tax doubles to $24, the distortion
Suppose the supply of labor is W – t = 10H, where W is the gross wage, t is the tax (in dollars), and H is labor hours. The demand for labor is W = 120 – 2H. a) declines b) remains the same c) doubles d) triples e) quadruples
When housing prices increase, household wealth ________, and consumption ________.
A. decreases; decreases B. increases; decreases C. decreases; increases D. increases; increases