What does the evidence from hyperinflations indicate with respect to the quantity theory of money? a. Evidence shows that money growth and inflation moved together, which supports the quantity theory.   b. Evidence shows that money growth and inflation moved together, which does not support the quantity theory.   c. Evidence shows that money growth and inflation did not move closely with each other, which supports the quantity theory.   d. Evidence shows that money growth and inflation did not move closely with each other, which does not support the quantity theory.

According to the quantity theory of money, delation of money supply is the result of when  _____ deceases while the money supply and velocity of money are stable   a.Unemployment b.Nominal interest rates c.Real gdp d.Money demand

Money neutrality is the idea that a. any policy can have intended and unintended consequences b. in the long-run, markets will clear and return the economy to equilibrium regardless of what happens to the money supply. c. there are two types of variables, nominal and real, and only nominal variables are affected by the money supply. d. nominal and real interest rates are unrelated.   During the middle of the 20th century, income inequality in developed economies generally fell. The reason for this was a. average incomes didn't rise but welfare systems redistributed income.  b. that returns to assets held by high income earners fell steadily. c. incomes overall rose but taxation systems were slowly made more and more progressive. d. a rise in average income with incomes of the bottom deciles rising faster than the top.

Suppose that initially the money supply is $1 trillion, the price level equals 3, the real GDP is $5 trillion in base-year dollars, and income velocity of money is 15. Then the money supply increases by $100 billion, while real GDP and income velocity of money remain unchanged. a. According to the quantity theory of money and prices, calculate the new price level after the increase in money supply:. b. Calculate the percentage increase in money supply: %. c. Calculate the percentage change in the price level: %. d. The percentage changes in the money supply is percentage changes in the price level. equal to the greater than the less than the

In the country Constantania, suppose the velocity of money is always the same. Last year, the money supply was $2 billion and real GDP was $5 billion. This year, the money supply increased by 6 percent, real GDP by 4 percent, and nominal GDP is $6.5 billion. a) Calculate the velocity of money and the price levels in the two years, and then calculate the inflation rate. b) Calculate the inflation rate using the formula AM/M + AV/V = AP/P + AY/Y, where the Greek letter A represents a change and the ratio AM/Mx 100 is the percentage change (or the rate of change) in M. Compare this result with the result you obtained in part a. Why could there be some difference? c) What is the difference between commodity money and fiat money? Why do people accept fiat currency in trade for goods and services?

Plz give me both answers I am give you Upvote 4 During a bout of hyperinflation, suppose the country of Weimar announces it will be rolling out a new currency, the Weimar Mark, which is worth 1 million Marks. Neutrality of money suggests this change will: Multiple Choice only change core inflation. not influence prices in the overall economy. None of these are true. dramatically decrease real wealth.   5.   The relationship between the money supply, output, and the overall price level is illustrated by the: Multiple Choice aggregate price level. neutrality of money. classical theory of inflation. measure of real output.

Suppose that velocity of money is constant, the expected inflation rate is always equal to the actual inflation rate, and the expected real interest rate is 3%. Answer the following questions. Justify your answers. a)Let the growth rate of the money supply rise to 10% without affecting the growth rate of real GDP or velocity. What happens to the inflation rate? If this new inflation rate becomes the expected inflation rate what happens to the nominal interest rate? b)Has the increase in the growth rate of money supply been generated by an open market operation conducted by the central bank? If so, how did the central bank generate this increase in the money supply? Only a qualitative answer is required.