If the nominal money supply rises by 6 percent, the price level rises by 4 percent, and output rises by 3 percent, then according to the quantity theory equation, income velocity must rise by:
a. 7 percent
b. 13 percent
c. 1 percent.
d. 3 percent.
Question 2
By the late 1880s, the main difference between the American Federation of Labor (AFL) and the Knights of Labor was
(a) the relatively low dues charged members by their AFL locals.
(b) the broader membership base of AFL locals compared to the Knights.
(c) the AFL's commitment to progressive politics.
(d) the narrow membership qualifications of AFL locals compared to
the Knights.
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