According to the assumptions of the quantity theory of money, if the money supply increases by 5 percent, then
a. nominal and real GDP would rise by 5 percent.
b. nominal GDP would rise by 5 percent; real GDP would be unchanged.
c. nominal GDP would be unchanged; real GDP would rise by 5 percent.
d. neither nominal GDP nor real GDP would change.
b
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In a Lorenz diagram for income, the line of equality shows
A) the most equitable income distribution. B) how unequally incomes are distributed. C) how much redistribution occurs. D) the income distribution if everyone received the same income.
Food stamps _____
a. do little to increase demand for agricultural products b. make certain low-income individuals eat healthy foods c. increase demand for agricultural products d. help fight obesity
A scatterplot
A) shows how Y and X are related when their relationship is scattered all over the place. B) relates the covariance of X and Y to the correlation coefficient. C) is a plot of n observations on Xi and Yi, where each observation is represented by the point (Xi, Yi). D) shows n observations of Y over time.
Pay-per-view broadcasts are
a. private goods. b. club goods. c. common resources. d. public goods.