According to the quantity theory of money, an increase in the quantity of money will increase the price level
a. and decrease real GDP and increase the velocity of circulation.
b. and increase real GDP but decrease the velocity of circulation.
c. but have no effect on real GDP or the velocity of circulation.
d. and increase real GDP and the velocity of circulation.
e. but have no effect on real GDP and will decrease the velocity of circulation.
Ans: c. but have no effect on real GDP or the velocity of circulation.
You might also like to view...
If a person is taxed $100 on an income of $1,000 . taxed $220 on an income of $2,000 . and taxed $390 on an income of $3,000 . this person is paying a(n):
a. progressive tax. b. poll tax. c. regressive tax. d. excise tax. e. proportional tax.
Richard raises Rhode Island Red chickens. Consumers, when buying chicken in the supermarket, view all other types of chickens as perfect substitutes for the Rhode Island Red. There are no barriers to entry in the chicken industry and, as a result, there are many, many chicken producers. An economist knows that
a. if Richard raises his price, he differentiates his chickens from the others on the market b. the demand curve Richard faces is horizontal c. if Richard lowers his price, he differentiates his chickens from the others on the market d. Richard can increase brand loyalty and market share by advertising e. Richard's relevant market is not chicken
When equilibrium GDP is below potential GDP, jobs are plentiful and unemployment is low.
Answer the following statement true (T) or false (F)
Games with a negative-negative outcome:
A. must have a noncooperative equilibrium. B. result from players acting in their own self-interest. C. are not necessarily the best outcome for the players involved. D. All of these statements are true.