The statement that a 2% increase in the money supply leads to a 2% increase in the price level is an example of a(n)
A)model.
B)normative statement.
C)variable.
D)prediction.
E)assumption.

Name: The statement that a 2% increase in the money supply leads to a 2% increase in the price level is an example of a(n) A)model. B)normative statement. C)variable. D)prediction. E)assumption.
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Question

Quizplus · Accepted Answer

The statement is a prediction about a relationship between two variables, the money supply and the price level.

The Statement That a 2% Increase in the Money Supply