The difference between the equation of exchange and the quantity theory of money is that the
A. equation of exchange assumes that the level of real GDP is constant.
B. quantity theory of money assumes that the Fed has no control over the money supply.
C. equation of exchange assumes that the level of nominal GDP is constant.
D. quantity theory of money assumes that velocity is virtually constant.
Answer: D
You might also like to view...
In peak-load pricing,
A) marginal revenue is equal in both periods. B) marginal revenue in the peak period is greater than in the off-peak period. C) marginal revenue in the peak period is less than in the off-peak period. D) the sum of the marginal revenues is greater than the sum of the marginal costs.
From the neoclassical view, physical capital per person refers to the amount and kind of:
a. machinery and equipment available to help people get work done. b. processes and money available to help people get work done. c. equipment and labor available to help people get work done. d. labor and equipment available to help people get work done.
Estimations of demand are used as input in this type of scenario:
A. understanding the demand for oil in order to impose a new oil import tax. B. understanding automobile demand to decide whether to offer below-market-rate loans for new cars. C. as input into a firm's decision-making process. D. all of the above
Since Social Security is a pay-as-you-go program, the funds for the people retiring today
A) come from those of us working today and in the future. B) come from the Federal Reserve. C) come from import taxes. D) come from foreign sales of gold.