The quantity theory of money and prices
A. shows how a change in the price level leads to a change in the money supply.
B. shows how the demand for money is inversely related to the price level.
C. is the hypothesis that changes in the money supply leads to proportional changes in the price level.
D. is derived from the equation of exchange assuming that prices remain constant.
Answer: C
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Social Security is the second-largest government redistribution program
a. True b. False
Which of the following characterizes the IACs?
a. High per capita GDP growth and high population growth. b. Low per capita GDP growth and low population growth. c. Low per capital GDP growth and high savings rate. d. Low human capital investment.
If government expenditure increases by $200 billion and taxes simultaneously increase by $200 billion, then aggregate demand
A) remains the same. B) decreases no matter what happens to aggregate supply. C) increases no matter what happens to aggregate supply. D) increases only if aggregate supply increases. E) increases only if aggregate supply decreases.
Using the growth accounting equation, if the growth rate of output is 5%, the growth of labor is 2% and the growth of capital is 2% then if α=0.50 then growth of technology can be estimated to be:
A. 4.25%. B. 4.00%. C. 3.00%. D. 4.75%.