If you believe that velocity is constant and that the aggregate supply curve is vertical, then the quantity theory of money would predict that a doubling of the money supply would cause a doubling of
a. nominal output and real output.
b. nominal output and no change in real output.
c. real output and no change in nominal output.
d. the price level and real output.
b
Economics
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Define the following terms and explain their importance to the study of macroeconomics:
a. money b. M1 c. near money d. bank run
Economics
To a bank, a loan the bank has made to its borrowers is classified as
A) an asset. B) a liability. C) vault cash. D) excess reserves. E) bank capital.
Economics