When real GDP equals potential GDP, the quantity theory of money says that an increase in the quantity of money brings an equal percentage
A) decrease in real GDP.
B) decrease in velocity.
C) decrease in the price level.
D) increase in the price level.
E) increase in real GDP.
D
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Generally, the longer the maturity on a bond, the lower the interest rate
a. True b. False
Which word or phrase indicates that an economist is using positive economics?
a. Bad b. Good c. If-then d. Should
Suppose that in 2020 the average citizen's federal tax bill is $12,466, and total federal spending is $10,824 per person. In 2020, the federal government will have
a. a budget surplus. b. a budget deficit. c. horizontal equity. d. vertical equity.
AT&T is an example of a business that used market power to
A. avoid government regulation. B. squash the competition. C. invest in important research benefiting society. D. minimize average costs of production.