If the quantity theory of money holds, then in an economy,
A) inflation = growth rate of money supply - growth rate of real GDP.
B) inflation = growth rate of money supply + growth rate of real GDP.
C) inflation = growth rate of money supply - growth rate of nominal GDP.
D) inflation = growth rate of money supply + growth rate of nominal GDP.
A
Economics
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The equilibrium price in the money market is the:
A) inflation rate. B) exchange rate. C) interest rate. D) none of the above.
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The law of diminishing marginal utility explains why
a. most individual demand curves are straight lines. b. the consumer's optimal purchase is at the tangency of an indifference curve and the budget line. c. most individual demand curves slope downward. d. marginal utility falls when total utility falls.
Economics