ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
According to the quantity theory of money, which variable in the quantity equation is most stable over long periods of time?
a. money
b. velocity
c.
d. output
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- An increase in ________ decreases the quantity of money people want to hold. a. the price level b. real GDP c. the interest rate d. the quantity of moneyarrow_forwardMoney held for emergencies represents the: A. Crisis demand for money. B. Disaster relief fund. C. Speculative demand for money. D. Precautionary demand for money.arrow_forwardIf the velocity of money is assumed to be constant in the short run, the quantity theory of money contends that a decrease in the money supply will lead to a proportional ____ a. Increase in unemployment rate b. Increase in nominal interest rate c. Increase in price level d. Decrease in nominal outputarrow_forward
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