From the Equation of Exchange,if Both Nominal Income and the Quantity

question 85

Multiple Choice

From the equation of exchange,if both nominal income and the quantity of money (M) have doubled,while the price level (P) has decreased by 50 percent and velocity (V) remains constant,then real output (Y) ________.

• A)also doubles
• B)triples
• C)quadruples
• D)decreases by 50 percent
• E)none of the above

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Definitions:

Described

Having been given a detailed account or depiction of something in words.

Young-Helmholtz Theory

A theory of color vision proposing that the eye contains three types of color receptors sensitive to red, green, and blue, which can produce the perception of all colors through their combined activity.

Primary Color

A base color that cannot be created by combining other colors in the color spectrum, usually red, blue, and yellow in traditional color theory.

Discriminate

to distinguish or differentiate between things or people based on certain criteria, which can be both positive, such as recognizing differences, and negative, leading to prejudice.