The equation of exchange suggests that,if the supply of money (M) and the velocity of money (V) remain unchanged,an increase in the physical volume of products produced (Q) will cause:
A) unemployment to rise as a percentage of the labour force
B) a rise in the price level
C) a decline in the price level
D) an automatic budget deficit
E) an automatic budget surplus
Correct Answer:
Verified
Q45: The monetarist view of discretionary monetary policy
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A)they
Q48: Consider the following table
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Q53: The value of the money multiplier is
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Q55: The velocity of money may be stated
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