According to the quantity theory of money, an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices. Both economic events helped merchant capitalists and the king
Indicate whether the statement is true or false
True
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The higher the reserve requirement,
a. the more the money supply can expand. b. the more interest the bank will earn on its reserve account. c. the less the money supply can expand. d. both the more the money supply can expand and the more interest the bank will earn on its reserve account.
The model of short-run economic fluctuations focuses on
a. the price level and real GDP. b. productivity and economic growth. c. the neutrality of money and inflation. d. None of the above is correct.
According to the convergence hypothesis, as a country grows wealthier, its productivity growth rate will slow down.
Answer the following statement true (T) or false (F)
Macroeconomic variables that the Fed cannot control directly but can influence fairly predictably, and which are related to the Fed's goals, are known as
A. instruments. B. intermediate targets. C. initial targets. D. tools.