Multiple Choice
The simple quantity theory of money predicts that if
A) the money supply rises by $200,then GDP falls by $200.
B) GDP rises by $400,then the money supply rises by $400.
C) the money supply rises by 10 percent,then the price level rises by 10 percent.
D) the money supply falls by $300,then GDP rises by $300.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: One-shot inflation can originate<br>A) only on the
Q8: When Milton Friedman said that "inflation is
Q9: In symbols,the equation of exchange says<br>A) MP
Q10: The income effect is the<br>A) increase in
Q11: Refer to Exhibit 14-2.The economy moves from
Q13: Grade inflation at colleges and universities is
Q14: If M = $6,000,P = $10,and Q
Q15: The equation of exchange is<br>A) an identity.<br>B)
Q16: The equation of exchange<br>A) is a theory
Q17: The chief difference between one-shot inflation and