The theory that if the velocity of money is stable, or at least predictable, changes in the money supply have predictable effects on nominal GDP is called ________
a. velocity of money theory
b. quantity theory of money
c. supply of money theory
d. inflation theory of money
b
You might also like to view...
Why does the free-rider problem occur in the debt market?
What will be an ideal response?
Describe the relationship between the production function, the investment function, and the capital-labor ratio
What will be an ideal response?
One firm previously operated as a monopoly. Now, one potential entrant exists. Consumers would prefer
A) entry, and the firms to split the output equally. B) no entry, and for the incumbent to produce the Stackelberg leader level of output. C) entry, and for the incumbent to produce the Stackelberg leader level of output. D) no entry, and the monopoly to continue.
If a college degree is used to signal high ability, but the cost of a college degree is relatively high,
A) a separating equilibrium is achieved. B) a pooling equilibrium is achieved. C) even low-ability workers will attend college. D) the share of high-ability workers must be 1.