If You Believe That Velocity Is Constant and That the Aggregate

question 55

Multiple Choice

If you believe that velocity is constant and that the aggregate supply curve is vertical, then the quantity theory of money would predict that a doubling of the money supply would cause a doubling of

• A)nominal output and real output.
• B)nominal output and no change in real output.
• C)real output and no change in nominal output.
• D)the price level and real output.

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Definitions:

Carver's Model

A governance model created by John Carver that emphasizes the board's responsibility for the organization's purpose, direction, and overall policy.

Sarbanes-Oxley Act

United States federal law enacted in 2002 to protect investors from fraudulent accounting activities by corporations, including stringent record-keeping requirements.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.

Electing Board Members

The process by which individuals are chosen or voted into a board of directors, typically by shareholders or members of the organization, to serve and make decisions on its behalf.