Regarding the equation of exchange, all of the following are true according to monetarists except
A. Changes in M may cause changes in P.
B. A reduction in M can leave real output unaffected.
C. The velocity of money is stable.
D. In reality, MV does not always equal PQ but it is still incredibly useful.
Answer: D
You might also like to view...
When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1 ________ because ________
A) changes only if Bank of America has excess reserves; if the bank does not have excess reserves, the overall effect to M1 is too small to notice B) decreases; checkable deposits are included in M2 but are not included in M1 C) does not change; both currency and checkable deposits are included in M1 D) changes, but the direction of the change cannot be determined; the direction of the change depends on what Bank of America does with the deposit E) increases; both currency and checkable deposits are included in M1
Refer to the scenario above. What is likely to be the impact on Firm A's sales if Firm A decides to sponsor the event while Firm B decides not to sponsor the event?
A) A 5% increase in sales B) A 2% increase in sales C) A 7% increase in sales D) A 0% increase in sales
Indifference curves intersect at the point of utility maximization
Indicate whether the statement is true or false
If Bob earns $20,000 a year and pays $2,000 in taxes, and Cindy earns $40,000 a year and pays $4,000 in taxes, then Bob’s tax rate is _______ and Cindy’s tax rate is_____.
A. 5%, 10% B. 2%, 4% C. 10%, 10% D. 20%, 10%