According to the simple quantity theory of money, a change in the money supply of 9.6 percent would lead to a

a. 9.6 percent change in velocity.
b. 9.6 percent change in real GDP.
c. 9.6 percent change in nominal GDP.
d. 9.6 percent change in aggregate supply.

c

Economics

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When the price of a normal good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased

A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease

Economics

A monopolist, unlike a perfect competitor, has total control in its market because it is the single producer. Why, then, must a single-price monopolist decrease its price if it wants to increase its output?

What will be an ideal response?

Economics