According to the quantity theory of money, if the growth rate of money supply is 6 and the growth rate of real GDP is 9, then the growth rate of nominal GDP in the economy will be:
A) 9. B) 6. C) 3. D) 15.
Question 2
What will happen if the institutions in an economy transform from inclusive to extractive?
A) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will decrease.
B) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will decrease.
C) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will increase.
D) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will increase.
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