The quantity theory of money is the idea that in the long run
A) the quantity of money is determined by banks.
B) the quantity of money serves as a good indicator of how well money functions as a store of value.
C) the quantity of money determines real GDP.
D) an increase in the growth rate of the quantity of money leads to an equal increase in the inflation rate.
D
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Buyers receive a consumer surplus when the price exceeds the marginal benefit
Indicate whether the statement is true or false
Borrowers benefit and lenders lose when the
A) actual interest rate is less than the expected real interest rate. B) actual interest rate is greater than the expected real interest rate. C) actual interest rate is equal to the expected real interest rate. D) actual inflation rate is less than the expected inflation rate.
What is the level of profits when four units are produced?
a. 40 b. 70 c. -30 d. 20
Which of the following statements is false?
A) Purchasing power and the price level are inversely related. B) The real balance effect refers to the change in the purchasing power of dollar-denominated assets as a result of a change in the price level. C) The aggregate demand curve slopes downward because of the real balance, interest rate, and international trade effects. D) A change in the quantity demanded of Real GDP is directly brought about by a change in interest rates.