If the simple quantity theory of money predicts well, what would we expect to see (in the real world)?
A) changes in the money supply strongly correlated with changes in interest rates
B) changes in the money supply strongly correlated with changes in inflation rates
C) changes in Real GDP strongly correlated with changes in the money supply
D) changes in velocity strongly correlated with changes in the money supply
E) none of the above
B
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In the figure above, the factor responsible for the decline in the interest rate is
A) a decline the price level. B) a decline in income. C) an increase in the money supply. D) a decline in the expected inflation rate.
A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in
A) the television market. B) the coffee market. C) the salsa market. D) All of the above.