According to the Quantity theory of Money, MV=PT, the two sides of the equation O Is mostly correct because of people's incentives Is never correct because of trade-offs Some times needs to be brought into equality by government policy O always balance because total value of sales is the same as the amount of money paid for them

According to the Quantity theory of Money, MV=PT, the two sides of the equation O Is mostly correct because of people's incentives Is never correct because of trade-offs Some times needs to be brought into equality by government policy O always balance because total value of sales is the same as the amount of money paid for them

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 15RQ: Why does the quality/new goods bias arise if we calculate the inflation rate based on a fixed basket...

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Why does the quality/new goods bias arise if we calculate the inflation rate based on a fixed basket of goods?
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