Other things the same, a decrease in velocity means that
a. the rate at which money changes hands falls, so the price level rises.
b. the rate at which money changes hands falls, so the price level falls.
c. the rate at which money changes hands rises, so the price level rises.
d. the rate at which money changes hands rises, so the price level falls.
b
You might also like to view...
Start-up costs:
A. have no impact on the number of firms in an industry because they are sunk costs. B. are the one-time costs incurred when beginning the production of a new product. C. are inversely related to variable costs. D. are always greater than marginal costs.
According to the rational expectation view, the government can change real output:
a. with appropriate, well-publicized fiscal and monetary policies b. with appropriate, well-publicized fiscal and monetary policies in the short run, but not in the long run. c. only by making unexpected changes in aggregate demand. d. without ever affecting the price level.
The United States has the most egalitarian distribution of income in the world
Indicate whether the statement is true or false
Aggregate supply is the:
A. total quantity of the production of all the households in the economy. B. market value of the total quantity of goods and services supplied in the economy. C. total quantity of goods and services demanded in the economy. D. market value of the total quantity of goods and services demanded in the economy.