Classical economists traditionally believed that:
A) there are three motives for demanding money.
B) a change in the money supply can affect real GDP.
C) the transactions demand for money influences the velocity of money.
D) the velocity of money is constant.
Correct Answer:
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Q30: Which of the following is true?
A) Keynesians
Q31: Most monetarists recognise that:
A) the velocity of
Q32: The equation of exchange (MV = PY)
Q33: Monetarists and classical economists assume that:
A) stimulative
Q35: The belief that the velocity of money
Q37: According to the quantity theory of money,
Q38: If nominal GDP is $500 billion, the
Q39: If the money supply = $100 billion,
Q87: According to the quantity theory of money,
Q90: While the classicists believed that both velocity
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