According to the Assumptions of the Quantity Theory of Money

question 129

Multiple Choice

According to the assumptions of the quantity theory of money, if the money supply decreases by 4 percent, then

• A)nominal and real GDP would fall by 4 percent.
• B)nominal GDP would fall by 4 percent; real GDP would be unchanged.
• C)nominal GDP would be unchanged; real GDP would fall by 0.40 percent.
• D)neither nominal GDP nor real GDP would change.

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Definitions:

Aerobic Training

A form of exercise that aims to improve efficiency of the cardiovascular system in absorbing and transporting oxygen.

Resistance Training

A form of physical exercise that involves the use of resistance to induce muscular contraction, which builds the strength, anaerobic endurance, and size of skeletal muscles.

Social Factors

Elements within society, such as family, education, income, and culture, that influence an individual's life choices and opportunities.

Cultural Factors

Elements of a society's traditions, beliefs, and practices that influence the behavior and attitudes of its members.