The constant velocity of money in the quantity equation implies that any increase in the money supply has to lead directly to:
A. a decrease in P.
B. an increase in P.
C. an increase in V.
D. an increase in Y.
Answer: B
You might also like to view...
Fred the farmer purchased five new tractors at $20,000 each. Fred sold his old tractors to other farmers for $50,000. The net increase in GDP of these transactions was
A) $50,000. B) $100,000. C) $125,000. D) $150,000.
Which of the following tools of commercial policy yields a revenue to the government?
a. Quota b. Tariff c. Export subsidy d. Government procurement policy e. Health and safety standards
Part of the reason for the success of Facebook is:
A. the avoidance of a positive externality. B. a strong negative network externality. C. a strong positive network externality. D. the avoidance of a negative externality.
Expansionary policies are government stabilization policies intended to increase:
A. unemployment. B. population. C. planned spending. D. average labor productivity.