During the 1970's, U.S. inflation averaged 7% each year and real GDP increased. Holding velocity constant and using the quantity equation, we conclude that
a. money growth must have been greater than the growth of real income.
b. money growth must have been less than the growth of real income.
c. prices fell during the 1970's.
d. output fell during the 1970's.
a
Economics
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The demand for gold increases, other things equal, when
A) the market for silver becomes more liquid. B) interest rates are expected to rise. C) interest rates are expected to fall. D) real estate prices are expected to increase.
Economics
The concept of Say's law can be summed up by the phrase,
A) "supply creates its own demand." B) "demand creates its own supply." C) "supply and demand are equivalent concepts." D) "supply and demand are irrelevant concepts."
Economics