If the demand for real money balances is proportional to real income, velocity will:
A) increase as income increases.
B) increase as income decreases.
C) vary directly with the interest rate.
D) be constant.
Correct Answer:
Verified
Q1: The quantity theory of money assumes that:
A)
Q8: If the quantity of real money balances
Q10: If income velocity is assumed to be
Q13: Given that M / P = kY,
Q13: The rate of inflation is the:
A) median
Q14: According to the quantity theory of money,
Q18: Real money balances equal the:
A)sum of coin,
Q19: If velocity is constant and, in addition,
Q19: If the average price of goods and
Q20: When people want to hold _ money,
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