Quantecon Is a Country in Which the Quantity Theory of Money

question 34

Multiple Choice

Quantecon is a country in which the quantity theory of money operates. The country has a constant population, capital stock, and technology. In year 1, real GDP was $400 million, the price level was 200, and the velocity of circulation was 20. In year 2 the quantity of money was 20 percent higher than in year 1.
The quantity of money in year 1 was ________.
The quantity of money in year 2 was ________.
The price level in year 2 is ________.

• A)$20 million; 24 million; 240
• B)$20 million; $24 million; 220
• C)$40 million; $48 million; 240
• D)$40 million; $48 million; 220
• E)$80 million; $88 million; 200

---

Definitions:

Subclass

In object-oriented programming, a class that is derived from another class (the superclass) and inherits its features but can also have additional properties or methods.

Modified Class

A class in object-oriented programming that has been altered or extended from its original definition to add new behaviors or modify existing ones.

Portability

The ease with which software, data, or services can be transferred and utilized on different hardware platforms, operating systems, or software applications.

Reusability

In object-oriented analysis, the ability to reuse existing classes from one project for another project.