The proposition that in the long run when real GDP equals potential GDP, an increase in the quantity of money leads to an equal percentage increase in the price level is the called the quantity theory of
A) constant velocity.
B) the long run.
C) money.
D) inflation.
E) equal change.
C
You might also like to view...
Trade allows each person to specialize in the activities he or she does best, thus increasing each individual's productivity
a. True b. False Indicate whether the statement is true or false
Two nations that did not fully recover from the 1992 crisis and are not members of the Eurozone as of 2016 are:
A) France and Germany. B) Britain and Sweden. C) Italy and Greece. D) Spain and Portugal.
An expansion occurs when ________, when ________, or when both of these occur.
A. potential output grows rapidly; actual output rises above potential output. B. potential output grows slowly; actual output equals potential output C. potential output grows slowly; actual output rises above potential output D. potential output grows rapidly; actual output equals potential output
How has Islamic banking redefined lending to deal with Islam's prohibition of usury?
What will be an ideal response?