According to the equation of exchange, if total output and velocity are constant, a 20 percent increase in the money supply leads to
a. a 20 percent decrease in the price level.
b. less than a 20 percent decrease in the price level.
c. less than a 20 percent increase in the price level.
d. a 20 percent increase in price level.
d. a 20 percent increase in price level.
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A foreign exchange swap
A) is a spot sale of a currency. B) is a forward repurchase of the currency. C) is a spot sale of a currency combined with a forward repurchase of the currency. D) is a spot sale of a currency combined with a forward sale of the currency. E) make up a negligible proportion of all foreign exchange trading.
Empirical evidence indicates that money demand is determined by
A) interest rates and the level of GDP. B) the inflation rate and the unemployment rate. C) interest rates and the money supply. D) the money supply and the level of GDP.
Which of the following is a stock variable?
a. Government spending b. Investment c. Daily household consumption d. Saving e. Wealth
Unlike budgeters in 49 states, federal officials are not required to balance the budget
Indicate whether the statement is true or false