If income velocity is assumed to be constant, but no other assumptions are made, the level of _____ is determined by M.
A) prices
B) real GDP
C) transactions
D) nominal GDP
Correct Answer:
Verified
Q1: The quantity theory of money assumes that:
A)
Q3: The demand for real money balances is
Q6: Percentage change in P is approximately equal
Q7: In the long run, according to the
Q8: If the quantity of real money balances
Q11: The definition of the transactions velocity of
Q13: Given that M / P = kY,
Q14: According to the quantity theory of money,
Q15: If the demand for real money balances
Q24: If there are 100 transactions in a
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