The constant velocity of money in the quantity equation implies that any increase in the money supply has to lead directly to:
A. a decrease in P.
B. an increase in P.
C. an increase in V.
D. an increase in Y.
Answer: B
Economics
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If the price of apples is on the vertical axis and the quantity of apples demanded is on the horizontal axis, the slope between two points on the line describing the relationship between price and quantity is
A) the change in price multiplied by the change in quantity. B) the change in price divided by the change in quantity. C) the change in quantity divided by the change in price. D) price divided by quantity.
Economics
The principle that "More is better" results in indifference curves
A) sloping down. B) not intersecting. C) reflecting greater preferences the further they are from the origin. D) All of the above.
Economics