Since classical economists believe that both V and Q are constants for an economy in short-run equilibrium, the equation of exchange becomes a theory in which:
A. the quantity of money explains prices.
B. the quantity of money explains velocity.
C. the quantity of money explains real GDP.
D. changes in M cause changes in V.
Answer: A
Economics
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The perceived specie shortage led colonists to invent:
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You deposit $3,000 into an N–year certificate of deposit that pays 4.5 percent annual interest, and at the end of the N years you have $4,082.59 . What is the number of years, N?
a. 4 b. 5 c. 6 d. 7
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