In 2008 and 2009, the quantity theory of money did a ________ job of predicting year-to-year changes in the inflation rate because ________
A) good; interest rates behaved predictably
B) poor; the Fed changed the growth rate of the quantity of money too quickly
C) poor; velocity of circulation plunged
D) good; real GDP remained stable
E) poor; the price level and the velocity of circulation did not change
C
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The law of downward sloping demand states which of the following?
A. Food spending changes in the opposite direction as income changes. B. When demand rises, supply falls. C. Quantity response to price is elastic. D. A larger quantity is demanded at a lower price than at a higher price, all other things held constant.
When a country allows trade and becomes an exporter of goods, producers gain more than consumers lose
a. True b. False Indicate whether the statement is true or false