The View That Velocity Is Constant in the Short Run

question 92

Multiple Choice

The view that velocity is constant in the short run transforms the equation of exchange into the quantity theory of money. According to the quantity theory of money,when the money supply doubles

• A)velocity falls by 50 percent.
• B)velocity doubles.
• C)nominal incomes falls by 50 percent.
• D)nominal income doubles.

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Definitions:

Piaget

A Swiss psychologist known for his theory of cognitive development which outlines how children's intellectual abilities evolve as they grow.

Concrete Operations

A stage in Piaget's theory of cognitive development, typically occurring between 7 and 11 years of age, during which children gain a better understanding of mental operations and can think logically about concrete events.

Tangible Objects

Physical items that can be seen, touched, and occupied in space, as opposed to abstract concepts or digital items.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.