The quantity theory of money and prices
A) is derived from the equation of exchange assuming that prices remain constant.
B) shows how a change in the price level leads to a change in the money supply.
C) shows how the demand for money is inversely related to the price level.
D) is the hypothesis that changes in the money supply leads to proportional changes in the price level.
D
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The figure above shows that monopoly is ________ because it produces a level of output at which ________
A) inefficient; marginal benefit equals marginal cost B) efficient; marginal benefit equals marginal cost C) efficient; marginal benefit exceeds marginal cost D) inefficient; marginal benefit exceeds marginal cost E) efficient; producer surplus is maximized
If society leaves some of its resources unemployed, then it will be operating at a point:
a. beneath its production possibilities curve. b. at a corner of its production possibilities curve. c. anywhere along its production possibilities curve. d. outside of its production possibilities curve.
An increase in GDP does not imply _____
a. an improvement in both life expectancy and the overall health of the population b. a rise in the average level of education of the population c. an improvement in the quality of air and water d. an increase in spending on natural disasters and war
Which of the following is an example of investment spending?
a. The Miller Company buys a used van to make deliveries. b. The Rodriguez family buys stock in the Bonanza Corporation. c. Claude invests his holiday bonus in rare comic books. d. The Gregor Bakery Company spends its profits on new ovens.