The money supply falls from $1,200 billion to $1,160 billion. According to the simple quantity theory of money, the price level will decline by __________ percent
A) 3.33
B) 4.68
C) 5.09
D) 7.65
A
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The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. Between Year 1 and Year 2, nominal GDP grew by
A) 60.0%. B) 65.5%. C) 83.3%. D) 190.0%.
An argument in support of hysteresis is
A) companies may be reluctant to hire workers until AD increases. B) prices are sticky in the short run. C) the skills of unemployed workers may deteriorate making it more difficult to find a job. D) overlapping wage contracts.
Tourism requires the actual movement of currency notes while investment in international bank deposits does not
a. True b. False Indicate whether the statement is true or false
A government budget deficit is
A. all federal government debt irrespective of who owns it. B. an excess of government spending over government revenues during a given time period. C. the total value of all outstanding federal government securities. D. a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period.