Given the Strict Quantity Theory of Money, If the Quantity

question 180

Multiple Choice

Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would

• A) fall by 50 percent.
• B) rise by 50 percent.
• C) increase by 100 percent.
• D) decrease by 100 percent.

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Definitions:

Free World Trade

The international exchange of goods and services without restrictive tariffs, quotas, or other trade barriers.

Tariffs and Quotas

Tools used by governments in international trade policy; tariffs are taxes on imported goods, while quotas are limits on the quantity of goods that can be imported.

Agricultural Imports

Goods related to agriculture brought into a country from abroad.

Food, Conservation, and Energy Act

A comprehensive piece of legislation passed by the United States Congress to address issues related to agriculture, nutrition, conservation, and energy.