According to the Quantity Theory of Money, If an Economy

question 106

Multiple Choice

According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:

• A) $0.13.
• B) $1.25.
• C) $8.
• D) $200.

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which leads to changes in behavior.

Extrinsic Rewards

Benefits and incentives provided by external factors, such as money, grades, or praise, which motivate behavior not inherently enjoyable.

Intrinsic Rewards

Internal satisfaction or fulfillment derived from engaging in an activity, without external incentives.

Continuous Reinforcement

A reinforcement schedule in which a particular response is always reinforced.