Suppose that the price level has risen but the government has not collected any seigniorage. Which of the following might have happened?
A. V rose, M and Y were constant.
B. Y rose, M and V were constant.
C. M rose, Y and V were constant.
D. M rose, Y fell, V was constant.
Ans: A. V rose, M and Y were constant.
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Which of the following statements is FALSE?
A. The economy is in equilibrium when saving equals investment. B. The classical school believed we are always tending toward full employment. C. The classical economists' aggregate supply curve is vertical in the short run. D. The economy is in equilibrium when aggregate demand equals aggregate supply.
If a decrease in the price of good A causes an increase in the demand for good B, then A and B must be complements
a. True b. False
Which of the following is not an argument in favor of restricting trade??
What will be an ideal response?
Which of the following is not a weakness of fiscal policy as a tool of economic stabilization?
What will be an ideal response?