The equation of exchange becomes the same as the quantity theory ...

[big1devin]

The equation of exchange becomes the same as the quantity theory of money by assuming that the velocity of circulation ________ when the quantity of money changes and potential GDP ________ when the quantity of money changes.
 
  A) changes; changes
  B) changes; does not change
  C) does not change; changes
  D) does not change; does not change

Question 2

In the above figure, if the price of milk rises, the budget line
 
  A) rotates outward and the slope becomes steeper.
  B) shifts inward and its slope does not change.
  C) rotates inward and the slope becomes steeper.
  D) rotates inward and the slope becomes more shallow.

[blazinlyss]

Answer to Question 1

D

Answer to Question 2

C

[big1devin]

YES! Correct, THANKS for helping me on my review

[flexer1n1]

Gracias!