According to the quantity theory of money
A) a change in the money supply can lead only to a proportionate change in the price level.
B) the velocity of money is the least stable factor in monetary analysis.
C) the rate of inflation is not related to changes in the money supply.
D) price level changes can best be explained by Keynesian analysis.
A
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Enforcement of antitrust laws is the responsibility of
a. only the Department of Justice b. only the Federal Trade Commission c. only the Antitrust Division d. both the Justice Department and the Federal Trade Commission e. the President
Suppose a consumer has preferences over two goods, X and Y, which are perfect substitutes. In particular, two units of X is equivalent to one unit of Y. If the price of X is $1, the price of Y is $3, and the consumer has $30 of income to allocate to these two goods, how much of each good should the consumer purchase to maximize satisfaction?
a. 30 units of X and 0 units of Y b. 0 units of X and 10 units of Y c. 15 units of X and 5 units of Y d. 15 units of X and 0 units of Y