According to the quantity theory of money, if M's growth is less than Q's, then
a. V falls
b. V rises
c. P stays the same
d. P falls
e. P rises
D
You might also like to view...
The substantial increase in clear property rights has severely impeded growth in many developing countries
Indicate whether the statement is true or false
Suppose the production of a good results in positive externalities. If output occurs at the intersection of the marginal social benefits curve and the supply curve, then
A. output will be at a higher level than if all benefits were not taken into account. B. output will be at a lower level than the socially optimal level. C. the marginal private benefit curve will lie above and to the right of the marginal social benefit curve. D. there will be underproduction. E. all of the above
In Figure 4-10 above, expansionary fiscal policy accommodated by the Fed can be pictured as a movement from points
A) A to D. B) A to C. C) D to B. D) B to D. E) A to B.
Points that lie outside (or beyond) the PPF are
What will be an ideal response?