If the price level is 2, real GDP is 50 billion, and the quantity of money is 4 billion, then velocity is
A) 8. B) 4. C) 10. D) 25. E) 12.5.
Question 2
Consider the market for feather pillows. If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then
A) there is a downward movement along the demand curve for feather pillows.
B) the supply curve for feather pillows shifts leftward.
C) the price of feather pillows decreases.
D) the demand curve for feather pillows shifts rightward.
E) the demand curve for feather pillows shifts leftward.