The equation of exchange is a formula indicating that the number of monetary units times
A) the number of times each monetary unit is spent on final goods and services is identical to the price level times real GDP.
B) real GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services.
C) nominal GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services.
D) the price level is identical to the number of times each monetary unit is spent on final goods and services times real GDP.
A
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When the Fed sells bonds in the open market, we can expect the
A) exchange rate to rise and interest rates to fall. B) exchange rate and interest rates to rise. C) exchange rate to fall and interest rates to rise. D) exchange rate and interest rates to fall.
Prior to 1840, most businesses were
A) family-owned. B) corporate in structure. C) vertically integrated. D) collections of partnerships.