The quantity theory of money implies that if the money stock were to double, the price level would
a. fall by one half.
b. rise, but only slightly.
c. also double.
d. be unchanged.
e. all of the above.
C
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A country reports that it has an unplanned inventory increase of $1.0 trillion. Discuss how the economy adjusts until it reaches an unplanned inventory change of $0.0 trillion
What will be an ideal response?
Which of the following is a method of reducing the poverty trap?
a. Imposing requirements for work as a condition of receiving benefits b. Ensuring that government benefits are increased gradually over time c. Reducing government benefits by an amount equal to income earned d. Providing a guaranteed minimum income for all needy recipients
Net tax is calculated by adding the amount collected as taxes by the government and the amount spent as transfer payments
a. True b. False Indicate whether the statement is true or false
Which of the following is a consequence of extended unemployment?
a. greater output per person b. lost tax revenue c. lower minimum wage d. increased efficiency wage