According to the quantity theory of money, if the velocity of money is stable or at least predictable, then the equation of exchange can be used to predict the effects of changes in the money supply on nominal GDP

________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce

A) Markets; markets B) Firms; households C) Factor markets; goods markets D) Entrepreneurs; firms E) Firms; firms

The law of increasing opportunity costs implies that a society's production possibilities curve will be a straight line

a. True b. False Indicate whether the statement is true or false