Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A) The aggregate demand-aggregate supply model shows the relationship between the money supply, the income velocity of money, the GDP deflator, and real GDP.
• B) The equation of exchange shows the relationship between the money supply, the income velocity of money, the GDP deflator, and real GDP.
• C) The quantity theory of money shows the relationship between the money supply, the income velocity of money, the GDP deflator, and real GDP.
• D) Incomes policy shows the relationship between the money supply, the income velocity of money, the GDP deflator, and real GDP.

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Definitions:

Emigrant Remittances

Funds that migrants send back to their home countries, often to support family members or invest in development projects.

India

A country in South Asia, known for its diverse geography, cultural heritage, and as the world's largest democracy by electorate.

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A country in North America, known for its rich cultural heritage, diverse landscapes, and as the largest Spanish-speaking population.

Philippines

A Southeast Asian country composed of more than 7,000 islands, known for its biodiversity, cultural diversity, and vibrant economy.