In the Long Run, According to the Quantity Theory of Money

question 30

Multiple Choice

In the long run, according to the quantity theory of money and classical macroeconomic theory, if velocity is constant, then _____ determines real GDP and _____ determines nominal GDP.

• A)the productive capability of the economy; the money supply
• B)the money supply; the productive capability of the economy
• C)velocity; the money supply
• D)the money supply; velocity

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Definitions:

Quitclaim Deeds

Legal documents used to transfer a claim, interest, or right in property from one party to another without any assurance of the validity of the grantor's claim.

Technical Defects

Flaws or imperfections in a product that affect its operation, often due to errors in manufacturing or design.

Chain of Title

A historical record of all previous owners and transfers of a piece of property.

General Warranty Deed

A type of deed that provides the highest level of protection for the buyer, guaranteeing the property is free from all claims and liens.