According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?
a. prices
b. real income
c. velocity
d. employment
A
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In the above figure, which curve shows a positive relationship between x and y?
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A tariff imposed by the United States on Japanese cars ________ the price of cars in the United States and ________ the quantity of Japanese cars imported into the United States
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
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Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. Then the central bank increases money growth as a result of an announced policy change
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