The Quantity Theory of Money Asserts That an Increase in the Quantity

question 112

Multiple Choice

The quantity theory of money asserts that an increase in the quantity of money

• A) by n percent will lead to an increase in the price level by n + 1 percent.
• B) will lead to an equal percentage increase in real GDP.
• C) will lead to an equal percentage increase in the price level.
• D) will decrease the price level by an offsetting amount.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Token Economy

A behavior modification system based on the systematic reinforcement of target behavior through the issuance of tokens that can be exchanged for desired rewards.

Contingency Contract

A formal, written agreement between the therapist and client (or teacher and student) in which goals for behavioral change, reinforcements, and penalties are clearly stated.

Systematic Desensitization

A behavioral therapy technique used to reduce phobias through gradual exposure to the feared object or situation paired with relaxation techniques.