If the MPC is 4/5, the multiplier is 5/4

The equilibrium price for a British pound is $1.60. At a price of $1.75 per British pound, there would be excess __________ the dollar and the dollar would __________

A) supply of; appreciate B) supply of; depreciate C) demand for; appreciate D) demand for; depreciate

The proposition that the velocity of money is fairly constant in the long run is known as the ________

A) neutrality of money B) classical dichotomy C) quantity theory of money D) Fisher effect E) none of the above