Monetarists believe that:
a. velocity is constant.
b. velocity is highly predictable.
c. there are three motives for demanding money.
d. changes in the money supply cause changes in velocity.
e. a change in the money supply can affect real GDP.
b
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Suppose the demand for hamburgers increases. In the short run, firms that produce hamburgers will experience a rise in prices, which will induce them to
A) increase production and decrease the number of workers. B) decrease production and increase the number of workers. C) decrease production and decrease the number of workers. D) increase production and increase the number of workers.
A bank manager tells you that she doesn't create money. She just lends the money that people deposit. Explain why she's wrong
What will be an ideal response?