The quantity theory of money and prices asserts that
A) increases in the money supply lead to inflation.
B) increases in the money supply lead to an increase in the velocity of money.
C) increases in the money supply lead to a decrease in the velocity of money.
D) increases in the money supply will increase real GDP.
A
You might also like to view...
Which of the following is a macroeconomic question?
A) Why did a leading computer manufacturer establish call centers in India? B) Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous? C) Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax? D) Why does a pharmaceutical manufacturer try to lower its production costs?
The above figure shows the U.S. market for 1 carat diamonds. With free trade, the United States produces ________ diamonds and imports ________ diamonds
A) 300,000; 600,000 B) 0; 900,000 C) 100,000; 900,000 D) 100,000; 800,000 E) 500,000; 400,000
Paying off the national debt brings about a(n)
a. increase in the money supply. b. redistribution of income. c. economic contraction. d. upward push on interest rates.
From 1865 to 1900, the production of wheat, corn, and cotton
A. increased much more slowly than population growth. B. increased somewhat more slowly than population growth. C. increased at about the same pace as population growth. D. increased faster than population growth.