In the flexible-price model of the macroeconomy with a given velocity of money and real GDP, the price level is determined by
A) the wealth level of households and businesses.
B) the stock of money in the economy.
C) the amount of savings in the economy.
D) the amount of total spending in the economy.
Correct Answer:
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Q19: The amount of money households and businesses
Q20: The theory that the only important determinant
Q21: The quantity theory of money equation is
A)
Q22: In quantity theory of money equation, P
Q23: In the quantity theory of money, V
Q25: In the flexible-price model of the macroeconomy
Q26: If the real GDP is equal to
Q27: If the money supply increases by10%, velocity
Q28: In the United States, the _, determines
Q29: The monetary base is
A) the sum of
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