Causality (what causes what) is clear and mechanical with the quantity theory of money. If M increases, with
a. V and Q being variable, the price level, P, increases
b. V and Q being variable, the price level, P, decreases
c. V and Q being constant, the price level, P, increases
d. V and Q being constant, the price level, P, decreases
e. P and Q being constant, velocity, V, increases
C
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The IMF agreement forced the U.S. to exchange gold for dollars at what price?
A) $25/ ounce B) $35/ ounce C) $45/ ounce D) $55/ ounce E) $20/ ounce
"Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange, this statement is false because
A) checking accounts are primarily used for savings in the current year. B) the interest rate on checking accounts is lower than on other accounts. C) the demand for real balances is negatively related to interest rates. D) money is money.
Make or buy decisions affect the degree of vertical integration
Indicate whether the statement is true or false
According to the above table, if real Gross Domestic Product (GDP) is $25,000, planned saving equals
A. $2,000. B. $4,000. C. $5,000. D. $3,000.