Multiple Choice
Which of the following is true of the equation of exchange?
A) It states that the product of the price level and velocity of money is equal to real GDP.
B) It states that aggregate demand in an economy is equal to total investment spending.
C) It states that money supply times velocity of money equals real GDP.
D) It states that velocity of money is equal to the ratio of nominal GDP and money supply.
E) It changes to the quantity theory of money if the price level is assumed to be constant.
Correct Answer:
Verified
Correct Answer:
Verified
Q105: If the Fed purchases U.S.government securities,gross domestic
Q106: Which of these is an advantage of
Q107: The figure given below shows the aggregate
Q108: If the money supply in an economy
Q109: If interest rates are to remain constant,the
Q111: Which of the following is an example
Q112: A decrease in the money supply in
Q113: The figure given below depicts short-run equilibrium
Q114: In the money market,an increase in money
Q115: The equation of exchange states that the