The view that velocity is constant in the short run transforms the equation of exchange into the quantity theory of money. According to the quantity theory of money, when the money supply doubles
A) velocity falls by 50 percent.
B) velocity doubles.
C) nominal incomes falls by 50 percent.
D) nominal income doubles.
D
You might also like to view...
The first industry to use interchangeable parts in the U.S. was
(a) machine tools. (b) guns. (c) cotton textiles. (d) watches.
Considering a given increase in price due to a tax, the less price elastic the demand curve is, the:
A. larger the drop in equilibrium quantity. B. smaller the amount of deadweight loss created. C. larger the amount of deadweight loss created. D. more surplus that is transferred to consumers.
Why does an existing less efficient technology drive out a new, more efficient technology?
a. The existing technology is a network that has become locked in. b. People are receptive to the new technology. c. The new technology is costlier to hire. d. The existing technology is a network that has become locked out. e. The government imposes taxes on the new technology.
Refer to the table below for a monopolist. If the monopolist perfectly price-discriminated and sold each unit of the product at the maximum price the buyer of that unit would be willing to pay, and if the monopolist sold 4 units, then total profits would be:
The following question is based on the demand and cost data for a pure monopolist given in the table below.
A. $100
B. $900
C. $150
D. $400