The equation of exchange indicates that:

A. MQ equals VP
B. The velocity of money and the supply of money vary proportionately with one another
C. Other things being equal, an increase in V will increase P and/or Q
D. Other things being equal, M and P are inversely related


C. Other things being equal, an increase in V will increase P and/or Q

Economics

You might also like to view...

From 1970 to 2006, data representing average real income for U.S. households indicates that the rich have ________ and the poor have ________

A) gotten richer; gotten poorer B) gotten richer; also gotten richer C) gotten richer; gotten neither richer nor poorer D) gotten poorer; also gotten poorer

Economics

Residential investment did NOT decline in the recession which began in

A) 1973. B) 1981. C) 1990. D) 2001.

Economics

The hypothesis that regulators eventually adopt policies that benefit the producers in the industry is known as the

A) capture hypothesis. B) producers' hypothesis. C) share-the-gains, share-the-pains hypothesis. D) it's-a-rip-off hypothesis.

Economics

Each of the following provides incentives to reduce a negative externality except:

a. a merger with affected firms. b. subsidizing consumption of the good being produced. c. bargaining among firms. d. taxation of the externality.

Economics