The quantity equation becomes the basis for a theory when we ...

[meagbuch]

The quantity equation becomes the basis for a theory when we assume that velocity of money is constant.
 
  Indicate whether the statement is true or false

Question 2

In the case of an upward-sloping aggregate supply curve, the change in real GDP brought about by a change in government spending will be less than that predicted by the simple government purchases multiplier.
 
  Indicate whether the statement is true or false

[manuelcastillo]

Answer to Question 1

TRUE

Answer to Question 2

TRUE