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Author Question: According to the quantity theory of money, if velocity of money is constant, a 5 percent increase in ... (Read 116 times)

fagboi

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on: Jun 30, 2018
According to the quantity theory of money, if velocity of money is constant, a 5 percent increase in money supply will lead to a 0.25 percent increase in nominal GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The quantity theory of money assumes that money supply and price level are the only variables in the equation of exchange that are free to fluctuate.
 a. True
  b. False
  Indicate whether the statement is true or false


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triiciiaa

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

False

Answer to Question 2

False


fagboi

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

connor417

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Reply 3 on: Yesterday
Wow, this really help

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