Which of the following is not one of the assumptions of the quantity theory of money?
A. Real output is independent of the money supply.
B. Causation goes from money supply to prices.
C. Velocity is constant.
D. The money growth rate is constant.
Answer: D
Economics
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Which of the following economists first coined the concept of creative destruction?
A) Adam Smith B) Malthus C) Joseph Schumpeter D) Paul Krugman
Economics
If X - M = $0 and the government sector has a deficit of $250 billion, the private sector
A) has a deficit that equals $250 billion. B) has a deficit that equals $500 billion. C) has a surplus that equals $250 billion. D) has a surplus that equals $500 billion.
Economics