The quantity theory of money states that in the long run
A) the price level will not consistently rise, it will fluctuate.
B) an increase in the quantity of money results in an equal percentage increase in the price level.
C) a rise in the price level rises causes the quantity of money to increase.
D) an increase in the quantity of money increases real GDP by a smaller percentage.
B
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Tariffs ________ the domestic price of the good and import quotas ________ the domestic price of the good
A) lower; lower B) lower; raise C) raise; lower D) raise; raise
In an open mixed economy, injections are saving, taxation, and import spending
Indicate whether the statement is true or false
The meaning of interdependence in a monopolistically competitive market is
A) that it is difficult for firms to get together to collude. B) that products produced by firms will be good substitutes. C) that firms will not take into account the reaction of rival firms. D) that price rigging commonly occurs.
Increasing the capital available to the workforce, holding other factors constant, tends to ________ total output while ________ average labor productivity.
A. decrease; increasing B. increase; not changing C. increase; decreasing D. increase; increasing