The quantity theory of money relies on which variable to remain constant?
A. Aggregate spending.
B. Velocity of money
C. Price level
D. Money supply
Answer: B
You might also like to view...
Over the 1980s and 1990s, countries with sound fiscal, monetary, and trade policies and strong rule of law combined with large amounts of aid:
A. still failed to grow, indicating new methods for furthering development are needed. B. grew at 1 percent, indicating the necessity of good policy in conjunction with aid. C. saw GDP shrink by 1 percent, indicating corruption and inefficient use of funds is rampant. D. None of these statements is true.
Normative economic statements refer to what should be
a. True b. False
Which of the following is most likely to be an inferior good?
A. Fur coats. B. Ocean cruises. C. Used clothing. D. Steak.
According to the Taylor rule, if inflation rises 1 percent above a target rate of 2 percent, the Fed should raise the federal funds rate, relative to the current rate of inflation, by:
A. 0.5 percentage point. B. 1 percentage point. C. 1.5 percentage points. D. 2 percentage points.