According to the quantity theory of money
A. a change in the money supply can lead only to a proportionate change in the price level.
B. the rate of inflation is not related to changes in the money supply.
C. the velocity of money is the least stable factor in monetary analysis.
D. price level changes can best be explained by Keynesian analysis.
Answer: A
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The Federal Reserve reports that it has coins valued at $10 billion, bank reserves at the Fed of $15 billion, gold valued at $10 billion, Federal Reserve notes of $400 billion, and U.S. government securities of $300 billion
What is the size of the monetary base?
Which of the following does NOT represent a possible shape of the long-run average cost curve?
A) downward sloping B) upward sloping C) U-shaped D) vertical
One major tax loophole intended to help state & local governments raise funds is:
a. fiscal federalism b. tax exempt municipal bond interest c. tax deductible mortgage interest d. tax credits for solar panels
When property rights are clearly defined and enforced, private owners will
a. use their property for selfish ends because they have little or no incentive to consider the desires of others. b. develop and direct their property toward uses that others value highly because the market will generally reward them for doing so. c. have little or no incentive to take care of their property or conserve it for the future. d. be unable to derive personal gain if they are sensitive to the desires of others when deciding how to use their property.