From the Equation of Exchange,if Both Real Income (Y)and the Quantity

question 70

Multiple Choice

From the equation of exchange,if both real income (Y) and the quantity of money (M) double and the price level (P) remains constant,then velocity (V) ________ and nominal income ________.

• A)remains constant;doubles
• B)doubles;remains constant
• C)doubles;doubles
• D)decreases by 50 percent;quadruples
• E)none of the above

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Definitions:

Frequency Chart

A graphical representation used to show the frequency of each category or value of data.

Relative Frequencies

The proportion of times a value occurs relative to the overall number of observations in a dataset.

Frequency Distribution

A representation, often in table or graph form, that displays the frequency of various outcomes in a sample.

Nominal Data

Data that are categorized without a natural order or ranking among the categories, used for labeling variables without quantitative values.