Multiple Choice
If the price level doubles,
A) The quantity demanded of money falls by half.
B) The value of money is cut by half.
C) Nominal income is unaffected.
D) None of these answers.
E) The money supply has halved.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q15: Suppose a central bank sells government bonds.
Q16: The nominal demand for money<br>A) Does not
Q17: If the money supply is €500, real
Q18: When prices are falling, economists say that
Q19: The quantity theory of money concludes that
Q21: If the price level were to double,
Q22: If actual inflation turns out to be
Q24: When prices rise at an extraordinarily fast
Q25: The term hyperinflation refers to<br>A) The spread
Q153: Economists agree that increases in the money-supply