Author Question: Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, ... (Read 98 times)

swpotter12 · **on:** Jun 30, 2018

Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would:
a. fall by 50 percent.
b. rise by 50 percent.
c. increase by 100 percent.
d. decrease by 100 percent.

Question 2

Juanita earned a B.S. in engineering and went to work for a large defense contractor in a small town in California. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes to be made into raisins, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is:
a. cyclical.
b. structural.
c. permanent.
d. frictional.
e. voluntary.