Cutting the Money Supply by One-Third Is Predicted by the Quantity

question 41

Multiple Choice

Cutting the money supply by one-third is predicted by the quantity theory of money to cause

• A)a sharp decline in real output of one-third in the short run,and a fall in the price level by one-third in the long run.
• B)a decline in real output by one-third.
• C)a decline in output by one-sixth,and a decline in the price level of one-sixth.
• D)a decline in the price level by one-third.

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Definitions:

Hernán Cortés

A Spanish Conquistador known for his expedition that led to the fall of the Aztec Empire and the establishment of Mexico City on its ruins.

Bartolome De Las Casas

A 16th-century Spanish historian and Dominican friar who became the first known advocate for the rights of indigenous people in the Americas, and opposed the abuses of the Spanish encomienda system.

Native Americans

The indigenous peoples of the United States, including a vast array of tribes, cultures, and languages that inhabited the land prior to European colonization.

Spanish Oppression

Historical period of dominance and harsh control by Spain over its colonies and various indigenous peoples.