The equation specifying the relationship between the money supply and the price level is
a. P = MV/Q
b. P = MQ/V
c. P = MV/M
d. P = Q/MV
e. P = Q/(M + V)
A
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High inflation
A) makes money function less well as a store of value. B) lowers the price level. C) leads to a more correct allocation of resources. D) decreases uncertainty. E) makes it easier to use money as a standard of account.
Local property taxes are used to provide
A. education. B. fire protection. C. libraries. D. all of these answer options are correct.
How does an increase in interest rates affect net exports?
What will be an ideal response?
The short-run aggregate supply curve (SRAS) slopes upward to the right because unexpected increases in prices will
a. increase aggregate demand as consumers buy more. b. decrease aggregate demand as consumers buy less. c. cause firms to expand output since the higher product prices will improve profitability. d. cause firms to reduce output since the higher product prices will decrease profit margins.