According to the equation of exchange, an increase in either velocity or the money supply will
a. cause PQ to rise.
b. not affect the price level.
c. cause the price level to fall.
d. cause PQ to fall.
a. cause PQ to rise.
Economics
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When the market price rises, the consumers' consumer surplus ________. When the market price falls, the consumers' consumer surplus ________
A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases E) does not change; increases
Economics
For the period 1947-2012, the behavior of the U.S. money supply is best characterized as
A) nearly constant over time. B) somewhat smoother than GDP. C) somewhat more volatile than GDP. D) extremely volatile and unstable.
Economics