The idea that expectations can affect the velocity of money is a critical factor in understanding
a. the Keynesian view of the quantity theory of money
b. the classical view of the quantity theory of money
c. the monetarist view of the quantity theory of money
d. why GDP must increase when the price level increases
e. why price changes cause inflation
A
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You have just read that the Federal Reserve has increased the money supply to avoid a recession. For a given price level, you would expect the LM curve to
A) shift up and to the left as the real money supply falls. B) shift up and to the left as the real money supply rises. C) shift down and to the right as the real money supply falls. D) shift down and to the right as the real money supply rises.
If the four-firm concentration ratio in an industry increases, the industry
a. must have become more competitive. b. must have become a monopoly. c. must have become less competitive, although not necessarily a monopoly. d. may or may not have become less competitive.
Which of the following is necessary for the presence of competition in a market?
a. Government regulations that assure firms will make excess profits. b. Suppliers that offer a homogeneous product. c. A price that always equals per-unit production costs. d. Low barriers to entry into the market.
The lowest the poverty rate has been during the last 50 years was in
A. 1960. B. 1967. C. 1973. D. 1979.