The Classical Economists Believed That If the Quantity of Money

question 66

Multiple Choice

The classical economists believed that if the quantity of money doubled

• A)output would double.
• B)prices would fall.
• C)prices would double.
• D)prices would remain constant.

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Definitions:

Equilibria

The state of balance in a market or other system where supply and demand are matched, and there is no tendency to change.

Dominant Strategies

In game theory, a strategy that is the best choice for a player, regardless of what the opposing player chooses.

Annual Profit

Annual profit is the financial gain a company or individual achieves in a fiscal year after all expenses, taxes, and costs have been subtracted from total revenue.

Dominant-Strategy Equilibrium

A situation in game theory where a specific strategy is best for a player, regardless of the strategies chosen by other players.