According to the Quantity Theory of Money, in the Long

question 15

Multiple Choice

According to the quantity theory of money, in the long run, changes in the money supply affect ____ GDP but not _____ GDP.

• A) nominal; per capita
• B) per capita; nominal
• C) real; nominal
• D) nominal; real

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Definitions:

Adjusting Entry

An accounting record made to adjust income or expenditure in accounts to reflect the accrual basis of accounting properly.

Stockholders' Equity

The ownership claim on a corporation's assets that remains after all liabilities are accounted for, denoting shareholder interest.

Current Assets

Short-term assets that are expected to be converted into cash within one year or within the operating cycle of a business.