Which of the following statements is false?
A) The exchange equation assumes that velocity is constant.
B) Velocity is the average number of times a dollar is spent to buy final goods and services in a year.
C) The simple quantity theory of money predicts that changes in the money supply lead to strictly proportional changes in the price level.
D) In the simple quantity theory of money the aggregate supply curve is vertical.
Correct Answer:
Verified
Q101: Changes in the money supply can affect
A)
Q102: According to the simple quantity theory of
Q103: Which of the following statements is false?
A)
Q104: In the monetarist version of the AD-AS
Q105: According to the simple quantity theory of
Q107: Suppose we are at a long-run equilibrium
Q108: Suppose we are at a long-run equilibrium
Q109: According to Milton Friedman,continued inflation is always
Q110: When Milton Friedman said that inflation is
Q111: One-shot inflation can be caused by
A) increases
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