In the quantity theory of money:
A. the price level is a function of the supply of money.
B. the supply of money is a function of the price level.
C. the money supply and the price level are inversely related.
D. velocity is always half of the price level.
Answer: A
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Everything else held constant, a decrease in government spending will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase B) right; decrease C) left; increase D) left; decrease
Refer to the game theory matrix where the numerical data show the profits resulting from alternative combinations of advertising strategies for Ajax and Acme. Ajax's profits are shown in the upper right part of each cell; Acme's profits are shown in the lower left. Without collusion, the outcome of the game is cell:
A. A.
B. B.
C. C.
D. D.