In the quantity theory of money:
A. the price level is a function of the supply of money.
B. the supply of money is a function of the price level.
C. the money supply and the price level are inversely related.
D. velocity is always half of the price level.
Answer: A
You might also like to view...
With lags in monetary policy, an effective expansionary policy must be initiated many months ________ the start of the economic downturn it is intended to moderate, and this requires ________ economic forecasts
A) before, generating accurate B) before, ignoring C) after, generating accurate D) after, ignoring
The price of bonds is tied to the interest rate; when one goes up, the other must fall
a. True b. False Indicate whether the statement is true or false
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Consider two countries—A and B. Economy A is a command economy, while economy B is a market economy. Given this information, which of the following statements is likely to be true?
A) Both economies are likely to grow at the same rate. B) Both economies are likely to stagnate without any increase in GDP. C) Institutions in economy A are likely to be more inclusive than institutions in economy B. D) Institutions in economy B are likely to be more inclusive than institutions in economy A.