Empirical evidence shows that the quantity theory of money is a good theory of inflation
A) in the long run, but not in the short run.
B) in the short run, but not in the longrun.
C) in both the long run and the short run.
D) not in either the long run nor the short run.
A
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A decrease in labor costs will cause aggregate ________.
A. demand to decrease B. supply to decrease C. supply to increase D. demand to increase
When people like yourself take extra (unbudgeted) money along on an extended trip, economists classify this money as satisfying your
a. speculative motive b. transactions motive c. emergency motive d. precautionary motive e. inflationary motive
The Herfindahl-Hirschman Index is an approach to measuring market concentration by adding the ___________ of the market share of each firm in the industry.
a. average b. mean c. sum d. square
Which of the following might limit the money creation process to an amount less than the potential amount?
a. bank pursuit of profits b. public holding some cash c. business demand for loan d. increased use of credit cards