According to the classical view,
A. velocity is constant, which means changes in price will cause changes in price or quantity.
B. quantity is constant, which means changes in the money supply could cause either changes in velocity or changes in prices.
C. velocity and price are constant so that changes in the money supply causes changes in quantity.
D. velocity and quantity are constant so that changes in the money supply cause changes in prices.
Answer: D
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If a bank offers mortgages that do not require the normal 20% down payment, the bank encourages
A) people who know they might not pay off the mortgage. B) people who can't afford the down payment but can pay off the mortgage. C) people who know that they are going to pay off the mortgage. D) people who know they can't pay off the mortgage but who can afford the down payment.
The regulation of the prices charged by insurance companies is known as
A) the Federal Register. B) social regulation. C) the market share test. D) economic regulation.