Author Question: According to the equation of exchange, the A) quantity of money divided by the inflation rate ... (Read 32 times)

imanialler · **on:** Jun 29, 2018

According to the equation of exchange, the

A) quantity of money divided by the inflation rate equals real GDP.
B) quantity of money minus the velocity of circulation equals real GDP minus the price level.
C) quantity of money multiplied by the velocity of circulation equals nominal GDP.
D) velocity of circulation is always smaller than the inflation rate.
E) quantity of money multiplied by the inflation rate equals nominal GDP.

Question 2

In the aggregate expenditure (AE) model, when real GDP exceeds aggregate planned expenditure, actual inventories ________ planned inventories and real GDP ________.

A) are less than; decreases
B) exceed; increases
C) exceed; does not change
D) are less than; increases
E) exceed; decreases