The quantity theory of money assumes that the velocity of money:
a. is constant.
b. will rise if the money supply rises and fall if the money supply falls.
c. will rise if the money supply rises, but it will not change if the money supply falls.
d. will fall if the money supply rises, and it will rise if the money supply falls.
e. will fall if the money supply rises, but it will not change if the money supply falls.
a
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Which of the following statements is FALSE?
A) Both monetary and interest rate targets cannot be pursued simultaneously. B) A reduction in the required reserve ratio increases the money supply and pushes down the equilibrium interest rate. C) An open market sale decreases the money supply and pushes up the equilibrium interest rate. D) An open market purchase reduces the money supply and pushes down the equilibrium interest rate.
Marginal utility tends to fall as a person increases his or her consumption
a. True b. False Indicate whether the statement is true or false