Monetarists say:
A. that, because P is stable, a change in M will change Q proportionately in the opposite
direction.
B. a change in the money supply will change aggregate demand and therefore the nominal
GDP.
C. a change in the money supply will change velocity, which in turn will change nominal GDP.
D. a change in the money supply will change the interest rate, which will change investment
spending and nominal GDP.
B. a change in the money supply will change aggregate demand and therefore the nominal
GDP.
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In a simple circular-flow diagram, households buy goods and services with the income they get from
a. wages. b. rents. c. profits. d. All of the above are correct.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C