According to the Equation of Exchange, If Real Output and the Money

question 69

Multiple Choice

According to the equation of exchange, if real output and the money supply stay the same and the price level increases:

• A) the velocity of money has to increase.
• B) the velocity of money has to decrease.
• C) the real GDP had to rise.
• D) nominal GDP remains constant.

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Definitions:

Unbiased Estimator

A statistic used to estimate a parameter that is expected to be equal to the true parameter of the population.

Population Parameter

A numerical characteristic or measure of an entire population, such as a mean (average), variance, or proportion.

Relative Efficiency

A measure comparing the precision or performance of two statistical estimators or methods.

Unbiased

An attribute of an estimator in statistics that means the expected value of the estimator equals the true parameter value it estimates.