What is the quantity theory of money?
What will be an ideal response?
The quantity theory of money is the proposition that in the long run an increase in the quantity of money creates an equal percentage increase in the price level.
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Expansionary policies are policies designed to
A) reduce the level of real GDP. B) increase the level of real GDP. C) reduce the federal deficit. D) decrease government spending.
In 2002 some politicians and many representatives of the steel and iron-ore mining industries in the U.S. complained foreign steel producers were illegally "dumping" steel and contributing to a potential unemployment problem
According to the economic way of thinking, their argument is questionable because A) it is not at all clear what the appropriate or correct price of steel is. B) it is not at all clear what the appropriate or correct cost of steel is. C) it is not at all clear that such an activity increases total unemployment in the U.S. D) all of the above are true.