Quantecon Is a Country in Which the Quantity Theory of Money

question 18

Multiple Choice

Quantecon is a country in which the quantity theory of money operates.The country has a constant population, and technology.In year 1, real GDP was $400 million, the GDP deflator was 200 a price level of 2) , and the veloc circulation was 20. In year 2 the quantity of money was 20 percent higher than in year 1.The quantity of money in year 1 was _______.
The quantity of money in year 2 was _______.
The GDP deflator in year 2 is _______.

• A)$40 million; $48 million; 240
• B)$20 million; $24 million; 220
• C)$80 million; $88 million; 200
• D)$20 million; 24 million; 240
• E)$40 million; $48 million; 220

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Definitions:

Connectedness

The state or quality of being connected or interconnected, often referring to social bonds or communication networks.

Superego

The superego is a component of Sigmund Freud's psychoanalytic theory, representing the ethical or moral self that contains societal norms and ideals internalized by individuals.

Freudian Perspective

A theoretical approach in psychology that emphasizes unconscious motivations and conflicts, as originated by Sigmund Freud.

Moral Branch

The aspect of psychological and social development that involves the growth of ethics, values, and understanding of right and wrong.