Using the quantity theory of money, in the long run a 3 percent increase in the quantity of money leads to a 3 percent
A) increase in real GDP.
B) decrease in the price level.
C) increase in the price level.
D) decrease in the real interest rate.
E) increase in the real interest rate.
C
You might also like to view...
The AK growth model indicates that countries with high saving rates experience ________, and countries with low saving rates experience ________
A) high growth rates; low growth rates B) low growth rates; high growth rates C) positive growth rates; no growth D) negative growth rates; positive growth rates
Which of the following is a reason for the law of increasing opportunity cost? a. Some goods have limited alternative uses
b. Not all resources are equally adaptable to other uses. c. Prices of specific final goods increase as more of those goods are produced. d. Prices of specific final goods decrease as more of those goods are produced.