Given the strict quantity theory of money, if the quantity of money doubled, prices would
a. fall by half.
b. double.
c. remain constant.
d. increase somewhat but less than double.
B
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Which of the following disinflationary monetary policies would classical economists prefer?
A) A cold turkey approach that is announced and credible. B) A cold turkey approach that is announced, but not credible. C) A gradual approach that is announced and credible. D) A gradual approach that is unannounced.
The demand for money curve depicts
A) an inverse relationship between the quantity of money demanded and the quantity of bonds demanded. B) a direct relationship between the quantity of money demanded and the quantity of bonds demanded. C) an inverse relationship between the quantity of money demanded and the interest rate. D) a direct relationship between the quantity of money demanded and the interest rate.
Investment in
a. physical capital, unlike investment in human capital, has an opportunity cost. b. physical capital, like investment in human capital, has an opportunity cost. c. human capital is particularly attractive because it involves no externalities. d. human capital has been shown to be relatively unimportant, relative to investment in physical capital, for a country's long-run economic success.
Per capita output would be certain to increase if:
A. real output decreases and population increases. B. both real output and population increase. C. both real output and population decrease. D. real output increases and population decreases.