The quantity theory of money of the Classical economists says that a change in the money supply will produce a:
A. proportional change in the price level.
B. greater than proportional change in the price level.
C. less than proportional change in the price level.
D. wide variation in the velocity of money.
Answer: A
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If the consumer price index (CPI) is 160 one year and 175 the next, the annual rate of inflation as measured by the CPI is approximately _____
a. 4.5 percent b. 8.6 percent c. 9.4 percent d. 15 percent e. 175 percent
Internal rate of return analysis suggest that a project should be undertaken if
A. NPV >0. B. MB > 0. C. IRR > discount rate. D. discount rate >inflation rate.
Explain why the decision to join the Euro system presents serious domestic monetary policy issues.
What will be an ideal response?
Which of the following is not included in National Income?
A) indirect taxes B) wages and salaries C) net interest D) rental income of persons