In the Quantity Theory of Money

question 55

Multiple Choice

In the quantity theory of money

• A)prices are rigid.
• B)both velocity of money and real output are variable.
• C)changes in the money supply cause changes in velocity of money.
• D)the velocity of money is assumed to be stable.

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Definitions:

Debt-to-Total-Assets Ratio

A financial ratio that indicates the proportion of a company’s assets that are financed by debt, used to assess financial leverage and risk.

Capital Structure

The mix of different types of debt and equity that a company uses to finance its overall operations and growth.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.