In the quantity theory of money
A) Prices are rigid.
B) Both velocity of money and real output are variable.
C) Changes in the money supply cause changes in velocity of money.
D) The velocity of money is assumed to be stable.
Correct Answer:
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Q24: The Fisher effect is
A) The one-for-one adjustment
Q25: If the money supply grows 5 per
Q26: The nominal demand for money
A) Does not
Q27: If the nominal interest rate is 6
Q28: An example of a real variable is
A)
Q30: The velocity of money is
A) Highly unstable.
B)
Q31: The quantity equation states that
A) Money ×
Q32: Countries that employ an inflation tax do
Q33: If money is neutral
A) An increase in
Q34: If a government supplies more money than
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