According to the Quantity Theory of Money, Nominal GDP Will

question 238

Multiple Choice

According to the quantity theory of money, nominal GDP will double if the money supply is

• A) reduced by one-half.
• B) reduced threefold.
• C) doubled.
• D) tripled.

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Definitions:

ATC Curve

Short for Average Total Cost Curve, it's a graphical representation used in economics to show how the average total cost of producing a good varies with the level of output.

Proportional Returns

The concept that the rate of return on an investment or project is consistent relative to the size of the investment.

Parkinson's Law

A principle stipulating that work expands to fill the time available for its completion.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill, often leading to increased efficiency.