According to the Quantity Theory of Money, Changes in the Price

question 349

Multiple Choice

According to the quantity theory of money, changes in the price level are the result of changes in the

• A) prime interest rate.
• B) real interest rate.
• C) quantity of money.
• D) velocity of circulation.

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Definitions:

Buying Stock

The act of purchasing ownership shares in a corporation, thereby obtaining a stake in its earnings and assets.

Expected Dividend

The forecasted dividend payment announced by a corporation's board of directors to its shareholders.

Last Paid a Dividend

The most recent instance when a company distributed a portion of its earnings to shareholders in the form of dividends.

Required Rate of Return

The required rate of return is the minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.