Suppose That M Is Fixed

question 15

Multiple Choice

Suppose that M is fixed. According to the quantity equation, which of the following would make the price level lower?

• A)Y or V rise
• B)Y or V fall
• C)Y rises or V falls
• D)Y falls or V rises

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Definitions:

Journal Entry

A record of a financial transaction in the general journal or other ledger, representing debits and credits to accounts.

Fringe Benefits

Benefits provided to employees in addition to wages and salaries.

Revenues And Expenses

The income a business earns from its operations and the costs incurred to generate that income.

Payroll Taxes

Taxes that are withheld from employees' wages by their employer and paid to the government, often including social security and medicare taxes.