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Author Question: According to the equation of exchange, the A) quantity of money divided by the inflation rate ... (Read 57 times)

imanialler

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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


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ms_sulzle

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

E


imanialler

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Reply 2 on: Jun 29, 2018
:D TYSM

brbarasa

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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