The Classical Economists' Conclusion That Nominal Income Is Determined by Movements

question 108

Multiple Choice

The classical economists' conclusion that nominal income is determined by movements in the money supply rested on their belief that ________ could be treated as ________ in the short run.

• A)velocity;constant
• B)velocity;variable
• C)money;constant
• D)money;variable

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Definitions:

Financing Statement

A document filed by a secured party to give public notice of their interest in the property of a debtor, typically used in secured transactions.

Collateral

Assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower fails to pay.

Purchase-Money Security Interest

A legal claim or lien on property that secures payment of the price or an obligation incurred for the property's purchase.

Consumer Good

A good used or bought for use primarily for personal, family, or household purposes.