Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would:

a. fall by 50 percent.
b. rise by 50 percent.
c. increase by 100 percent.
d. decrease by 100 percent.


a

Economics

You might also like to view...

Seniors paying a lower price for tickets at movie theatres.

Answer the following statement(s) true (T) or false (F)

Economics

If a seller enjoys a producer surplus of $30 when he sells a good for $79, his reservation value for the good is ________

A) $30 B) $49 C) $79 D) $109

Economics

If marginal costs differ quite substantially from average total costs, then using a cost-plus pricing schedule will not lead to the profit maximizing price

Indicate whether the statement is true or false

Economics

The situation of oligopoly suggests

A) many firms compete in an industry. B) mergers have not occurred. C) interdependence among firms. D) no barriers to entry exist.

Economics