The hypothesis that changes in the money supply lead to proportional changes in the price level is called
A) the equation of exchange.
B) the Keynesian multiplier.
C) the theory of empirical relativity.
D) the quantity theory of money and prices.
D
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Suppose that in Belgium, the opportunity cost of producing a trombone is 8 clarinets. In Denmark, the opportunity cost of producing a trombone is 6 clarinets
a. What is the opportunity cost of producing a clarinet for Belgium? b. What is the opportunity cost of producing a clarinet for Denmark? c. Which country has a comparative advantage in the production of clarinets? d. Which country has a comparative advantage in the production of trombones?
The invention of the steam engine ushered in the following developments, except:
A. Mass-production in industrial factories, for the first time B. Much easier and cheaper transportation of resources and products C. A sharp reduction in trade as many societies specialized D. Major population shifts, from farms to towns and cities