The equation of exchange
A. is an identity.
B. requires that an increase in nominal GDP must always be accompanied by an increase in the velocity of money.
C. does not apply when the level of unemployment is quite high.
D. holds only if the velocity of circulation of money is a constant.
A. is an identity.
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Refer to Figure 16-6. Suppose instead of charging the monopoly price for his classes, Sensei charges the competitive price. What is the competitive price and what is the quantity demanded at this price?
A) P1, Q0 B) P0, Q1 C) P1, Q1 D) P0, Q0
There is a firm basis for specifying what a family's minimum needs are
Indicate whether the statement is true or false
A sale of U.S. government securities by the Fed causes a(n)
A) expansion of the money supply equal to the amount of the securities sold. B) contraction of the money supply equal to the amount of the securities sold. C) expansion of the money supply of more than the amount of the securities sold. D) contraction of the money supply of more than the amount of the securities sold.
In the 2007-2009 period, the expenditure level in the United States intersected the 45-degree line below potential GDP, causing
a. hyperinflation. b. a growing trade deficit. c. a government budget surplus. d. unemployment.