The major difference between the quantity theory of money (QTM) ...

[Mr.Thesaxman]

The major difference between the quantity theory of money (QTM) and the equation of exchange (EOE) is:
 a. QTM deals with different macroeconomic variables than EOE.
  b. EOE is a tautology and QTM is a theory.
  c. EOE is a theory, and QTM is a tautology.
  d. There is no difference between QTM and EOE. They are both basically looking at the same variables in the same way. One approach is monetarist and the other is Keynesian.
  e. EOE is a stock concept, and QTM is a flow concept.

Question 2

An increase in government spending causes the:
 a. Monetary base to fall.
  b. Monetary base to either rise or fall, depending on the state of the economy.
  c. No change in the monetary base.
  d. Monetary base to rise.

[wshriver]

Answer to Question 1

.B

Answer to Question 2

.C

[Mr.Thesaxman]

TYSM

[okolip]

Excellent