According to the quantity theory of money
A. velocity varies indirectly with the rate of growth of the money supply.
B. a given proportionate increase in the money supply leads to an equal proportionate increase in the price level.
C. a proportionate increase in the money supply leads to a less than proportionate increase in real Gross Domestic Product (GDP), at least in the long run.
D. real Gross Domestic Product (GDP) is directly related to changes in the money supply in the long run.
Answer: B
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The table below shows how the total utility that Alan derives from watching basketball games changes as he watches more and more games each week:
Basketball Games Total Utility Marginal Utility 1 55 2 85 3 110 4 130 5 145 6 155 Fill in the table above. Do the numbers in the table support the law of diminishing marginal utility? Explain.
Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process
What will be an ideal response?
GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports are:
a. - $84 billion b. - $161 billion c. + $53 billion d. - $47 billion
Which of the following has been one of the most productive sectors of the U.S. economy through the 19th, 20th and 21st centuries?
A. Textiles B. Steamships C. Steel D. Agriculture