The quantity theory of money is based on the formula that
A. Y = P*V/Ms.
B. P = Ms*V/Y.
C. V = P*Y*Ms.
D. Ms= P*V/Y.
Answer: B
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A Canadian oil company hires geological survey services from the United States. If all else remains equal, this will
A) increase the financial account. B) decrease the current account balance. C) increase the balance of trade. D) increase net exports.
Which of the following statements is (are) correct? Keynesians criticize the new classical theory because
a. the new classical model cannot explain changes in expectations. b. of the contracting market characterization of the labor market. c. the rational expectations assumption ascribes an extreme and unrealistic availability of information to market participants. d. All of the above
A GDP price index of 100 for a year implies that: a. there has been no inflation during the year
b. the price level is three times what it was in the base year. c. the price level is one hundred times what it was in the base year. d. the price level is double what it was in the base year. e. the inflation rate has been 100 percent per year since the base year.
What are the characteristics of monopolistic competition?
What will be an ideal response?