According to the Quantity Theory of Money, a 10 Percent

question 36

Multiple Choice

According to the quantity theory of money, a 10 percent increase in the money supply leads to a 10 percent increase in:

• A) velocity.
• B) unemployment.
• C) the price level.
• D) real GDP.

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Definitions:

Dividends Received

Payments made to shareholders out of a corporation's earnings, representing a share of the profits.

Unrealized Gains

Increases in the value of an asset that has not been sold, and thus the gain has not been "realized" through a transaction.

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.

Available-For-Sale Securities

Financial investments that a company holds with the intent of selling for a profit but are not actively traded or held to maturity.