An assumption used in the quantity theory of money is that
A. nominal Gross Domestic Product (GDP) is constant.
B. the money supply is constant.
C. the price level is constant.
D. velocity is constant.
Answer: D
You might also like to view...
The price charged by a perfectly competitive firm is determined by
a. each individual firm b. a group of firms acting together as a cartel c. market demand and market supply d. the firm's total costs alone e. the firm's average variable cost
The change in saving divided by the change in income is the:
a. propensity to save. b. saving function. c. average propensity to save. d. extra propensity to save. e. marginal propensity to save.
Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her explicit costs for her new business include:
A. only the expenses incurred for office space, equipment, and supplies. B. only her forgone salary of $42,000 per year. C. neither the expenses incurred for office space, equipment, and supplies nor her forgone salary of $42,000 per year. D. both the expenses incurred for office space, equipment, and supplies and her forgone salary of $42,000 per year.
Behavioral economists suggest that brand-loyalty, which can be a source of monopoly power for the producer, may be explained by consumers' tendency to have the:
A. Anchoring effect B. Mental accounting effect C. Status quo bias D. Confirmation bias