According to the Assumptions of the Quantity Theory of Money,if

question 159

Multiple Choice

According to the assumptions of the quantity theory of money,if the money supply increases 5 percent,then

• A)both the price level and real GDP would rise by 5 percent.
• B)the price level would rise by 5 percent and real GDP would be unchanged.
• C)the price level would be unchanged and real GDP would rise by 5 percent.
• D)both the price level and real GDP would be unchanged.

---

Definitions:

Deferred Tax Assets

Future tax benefits arising from temporary differences between the tax and accounting recognition of revenue and expenses.

Classifying

The process of organizing data, objects, or concepts into categories based on shared qualities or characteristics.

Noncurrent Deferred Tax Liability

A tax obligation payable in future periods as a result of temporary differences between the tax base of an asset or liability and its carrying amount on the balance sheet.

Accelerated Depreciation

A method of depreciation that allows a larger portion of an asset’s cost to be written off in the early years of useful life, decreasing taxable income.