If the velocity of money (V) and real output (Q) were increasing at approximately the same rate, then:
a. it would be impossible for monetary authorities to control inflation
b. monetary acceleration would not lead to inflation.
c. inflation would be closely related to the long-run rate of monetary expansion.
d. none of the above
c
Economics
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The figure above represents the relationship between output and cost in an industry with an external cost. Which line represents the marginal private cost (MC) curve?
A) Curve 1 B) Curve 2 C) the dotted line BC D) the y-axis E) the dotted line AB
Economics
An increase in the money supply will:
A. lower interest rates and lower the equilibrium GDP. B. lower interest rates and increase the equilibrium GDP. C. increase interest rates and increase the equilibrium GDP. D. increase interest rates and lower the equilibrium GDP.
Economics