Author Question: The quantity theory of money argues that, in the long run, the percentage change in money will ... (Read 65 times)

beccaep · **on:** Jun 29, 2018

The quantity theory of money argues that, in the long run, the percentage change in money will create an equal percentage change in

A) velocity.
B) real GDP.
C) potential GDP.
D) the price level.

Question 2

Country A has a more equal distribution of income than country B if

A) country A's Lorenz curve is closer to the line of equality than is country B's Lorenz curve.
B) country B's Lorenz curve is closer to the line of equality than is country A's Lorenz curve.
C) country A's Lorenz curve is just as close to the line of equality as is country B's Lorenz curve.
D) None of the above because it is impossible to compare income inequalities across countries.