If nominal money balances increase from $2 billion to $3 billion, while the price level increases from 100 to 150, real money balances will
A) have increased by 50%.
B) have decreased by 50%.
C) have increased by 100%.
D) be unchanged.
Correct Answer:
Verified
Q11: Since 1965, the price level in the
Q12: The premise of the quantity theory of
Q13: People use money primarily
A)to carry out transactions.
B)as
Q14: If the quantity of money is $1
Q15: Real money balances equal
A)MP.
B)M/P.
C)P/M.
D)nominal money balances.
Q17: In order to buy in 2006 a
Q18: In developing early theories about money demand,
Q19: The demand for money for transactions is
A)independent
Q20: Velocity equals
A)PY/M.
B)M/PY.
C)MP/Y.
D)MY/P.
Q21: In the period since 1914,
A)M1 velocity has
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