According to the quantity theory of money, an increase in the money supply leads to:
A. a decrease in prices, as there are more dollar bills spent on the same number of goods and services.
B. an increase in prices, as there are more dollar bills spent on the same number of goods and services.
C. an increase in prices, as there are the same dollar bills spent on a greater number of goods and services.
D. a decrease in price, as there are the same dollar bills spent on a greater number of goods and services.
Answer: B
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Measuring the effects of labor immigration shows:
a. that as workers move, they disrupt their families and cause huge costs in the recipient nation. b. that most immigrants spend months trying to find work. c. that immigration benefits the recipient nation by raising the marginal product of capital, expanding laborintensive production, and lowering prices of laborintensive goods. d. that immigration is very harmful to the host nation because of a huge increase in the unemployment rate
The price ceiling depicted in the above figure results in
A) consumer surplus increasing from $30 thousand to $34.5 thousand. B) producer surplus decreasing from $24 thousand to $6 thousand. C) a deadweight loss of $16 thousand. D) Both answers A and B are correct.