According to the quantity theory of money, the price level decreases in equal proportion to
A) a decrease in the nominal interest rate. B) an increase in the real interest rate.
C) an increase in the income velocity of money. D) a decrease in the money supply.
D
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Risk premiums on corporate bonds tend to ________ during business cycle expansions and ________ during recessions, everything else held constant
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
If Ap is total autonomous planned spending, c is the marginal propensity to consume, s is the marginal propensity to save, and Y is the equilibrium income level, then
A) Ap/Y. B) Y = Ap/s. C) sY. D) cAp.
Pension funds ________
A) acquire access to funds by accepting deposits then using these monies to lend to households and firms B) raise funds by selling commercial paper then lend these funds to consumers C) are a special type of mutual fund D) acquire access to monies through the payment of premiums by employees
Assuming well-defined indifference curves, when marginal utility is zero, total utility is at a maximum.
Answer the following statement true (T) or false (F)