If Velocity Does Not Change and If Real GDP and the Quantity

question 82

Multiple Choice

If velocity does not change and if real GDP and the quantity of money grow at the same rate, then the price level

• A)does not change and the inflation rate is zero.
• B)falls and the inflation rate is negative.
• C)falls and the inflation rate is positive.
• D)rises and the inflation rate is negative.
• E)rises and the inflation rate is positive.

Distinguish between status quo bias and omission bias in decision-making.

Analyze the characteristics and implications of being an entity theorist versus an incremental theorist.

Identify different forms of decision avoidance and their underlying reasons.

Understand how social psychology explains attraction and changes in perception under specific conditions.