The quantity equation relates a measure of the money supply (M), to the velocity of money (V), the GDP deflator (P) and real GDP (Y). Which of the following expression accurately describes the quantity equation?
What will be an ideal response?
MV = PY
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Which of the following would be expected to decrease the demand for money in the U.S.?
A. The economy enters a boom period. B. Grocery stores begin to accept credit cards in payment. C. Political instability increases dramatically in developing nations. D. Households fear increasing computer glitches will severely limit their ability to use ATMs.
When per capita real GDP is increasing, real output is growing
a. more rapidly than prices. b. more rapidly than population. c. less rapidly than prices. d. less rapidly than population.
The "coupon rate" is:
A. the total amount of interest payments made on a bond as a percentage of the amount borrowed. B. the annual amount of interest payments made on a bond as a percentage of the amount borrowed. C. the change in the value of a bond expressed as a percentage of the amount borrowed. D. another name for the yield on a bond, assuming the bond is sold before it matures.
Which of the following is true of the short-run aggregate supply curve?
What will be an ideal response?