Karl Marx published:

If velocity is constant then targeting the money supply and nominal GDP is

A) effectively an interest rate target. B) effectively a real GDP target. C) effectively the same thing. D) inherently inconsistent.

In the classical model, beginning from an equilibrium in which the government is running a budget surplus, an increase in government spending will

a. lower the wage rate b. increase the supply of loanable funds c. cause total spending to decline d. cause total spending to increase e. leave total spending unchanged