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Author Question: If a percentage decrease in money supply is followed by a proportional percentage decrease in prices ... (Read 105 times)

sam.t96

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on: Jun 30, 2018
If a percentage decrease in money supply is followed by a proportional percentage decrease in prices and output, this means that:
 a. the velocity of money is constant.
  b. the economy is in a recession.
  c. the velocity of money has fallen.
  d. real GDP is constant.
  e. the economy is not at maximum capacity

Question 2

A surplus exists in the market for Barbie dolls at the prevailing price. The surplus will be eliminated by a price:
 a. increase, decreasing the supply and increasing the demand.
 b. decrease, decreasing the supply and increasing the demand.
 c. decrease, increasing the quantity supplied and increasing the quantity demanded.
  d. decrease, decreasing the quantity supplied and increasing the quantity demanded.


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ankilker

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

d


sam.t96

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

frankwu0507

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

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