According to the quantity theory of money, if there are fewer dollars available to spend on the same number of goods and services, then:
A. the price level will fall.
B. the price level will rise.
C. output will decrease.
D. output will increase.
A. the price level will fall.
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Crowding out will be more pronounced the closer to vertical is the
A) IS curve. B) LM curve. C) consumption function. D) aggregate demand function.
A person who is willing to bear more risk will buy
A) common stock. B) preferred stock. C) bonds. D) government bonds.
Answer the following statements true (T) or false (F)
1. A consumption tax exempts saving from taxation. 2. A national sales tax would be considered regressive in relation to income. 3. In the past few decades, the tax system of the United States has been used to redistribute income. 4. If the primary purpose of taxes was to raise sufficient revenue to cover the costs of government-provided services, a balanced budget would be an ongoing target. 5. Using the budget as an economic stabilizer requires maintaining a continuous deficit.
Over coffee in the cafeteria Susan stated that the university should be run like a profit- seeking corporation. Sam correctly pointed out that she had made a ____________ statement, as Professor McSnerd had described in their economics class
a. ceteris paribus conjunctive b. normative c. macroeconomic d. positive e. microeconomic