If velocity = 5, the price level = 2, and the real value of output is 2,500, then the quantity of money is
a. $250.
b. $25,000.
c. $1,000.
d. $6,250.
c
You might also like to view...
Give an example of a famous cartel
The “Taylor rule” for monetary policy provides the Fed with a
A. mechanical prescription for monetary policy. B. benchmark to guide policy decisions. C. time frame for discount rate changes. D. rule for changing the M1 money supply.
A graph that maps output against the input required to make that output is called a/an
A. marginal cost function. B. cost function. C. average cost function. D. production function.
Because handling charges are relatively fixed, the interest rate on a loan generally
A) increases with the size of the loan. B) decreases with the size of the loan. C) is constant regardless of the size of the loan. D) is unrelated to the size of the loan.