Suppose That M Is Fixed

question 162

Multiple Choice

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

• 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:

Fixed Costs

Business expenses that remain constant regardless of the level of goods or services produced.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Units

Refers to a standard quantity or measurement used for comparison and calculation, such as in physics or mathematics.