The quantity theory of money states explicitly that the:
A. value of money is determined by the overall quantity of money in existence.
B. Real GDP is determined by the money supply.
C. money supply is determined by the price level.
D. there is no relationship between the value of money and the quantity of money in existence.
A. value of money is determined by the overall quantity of money in existence.
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As a result of increased use of credit cards,
A) the demand for money has decreased and there has been a movement up along the demand for money curve. B) the demand for money has decreased and there has been a movement down along the demand for money curve. C) the equilibrium nominal interest rate has decreased and bond prices have fallen. D) the demand for money has decreased and the demand for money curve has shifted leftward. E) the equilibrium nominal interest rate has increased and bond prices have decreased.
Foreign banks may engage in banking activities in the United States by opening all of the following EXCEPT
A) an agency office of the foreign bank. B) a subsidiary U.S. bank. C) a branch of the foreign bank. D) a McFadden Corporation.
Which of the following is a stock variable? The number of
A) unemployed people. B) reentrants. C) job losers. D) job leavers.
Supply-side theory suggests that
A) aggregate supply does not depend on labor productivity. B) increased government spending does not increase aggregate demand. C) lower tax rates may not reduce overall tax revenues. D) increased labor productivity may not increase real output.