Since Classical Economists Believe That Both V and Q Are

question 76

Multiple Choice

Since classical economists believe that both V and Q are constants for an economy in short-run equilibrium, the equation of exchange becomes a theory in which:

• A) the quantity of money explains prices.
• B) the quantity of money explains velocity.
• C) the quantity of money explains real GDP.
• D) changes in M cause changes in V.
• E) prices are never flexible

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Definitions:

Patella

The patella, commonly known as the kneecap, is a small, flat bone located in front of the knee joint. It protects the knee and connects muscles from the thigh to the lower leg.

Tendons

Fibrous connective tissues that attach muscles to bones, facilitating movement by transferring forces.

Hyoid Bone

A U-shaped bone in the throat that supports the tongue and is involved in swallowing.

Floating Rib

The last two pairs of ribs in humans that are not attached to the sternum or to other ribs, providing flexibility and mobility.