Author Question: According to both the equation of exchange and the quantity theory of money A) an increase in the ... (Read 59 times)

jilianpiloj · **on:** Jun 30, 2018

According to both the equation of exchange and the quantity theory of money

A) an increase in the money supply will decrease real Gross Domestic Product (GDP).
B) a decrease in the money supply will decrease the velocity of money.
C) a decrease in the money supply will decrease the price level.
D) an increase in the money supply will increase real Gross Domestic Product (GDP).

Question 2

If real wages fall:

A) consumer demand is likely to increase.
B) employers are likely to hire more workers.
C) the level of economic production will always increase.
D) the level of economic production will always decrease.