The Equation of Exchange Becomes the Same as the Quantity

question 480

Multiple Choice

The equation of exchange becomes the same as the quantity theory of money by assuming that the velocity of circulation ________ when the quantity of money changes and potential GDP ________ when the quantity of money changes.

• A) changes; changes
• B) changes; does not change
• C) does not change; changes
• D) does not change; does not change

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Definitions:

Benzodiazepines

A class of psychoactive drugs used to treat conditions such as anxiety, insomnia, and seizures by enhancing the effect of the neurotransmitter GABA.

Tranquilizer

Drugs used to reduce tension or anxiety; they can vary in strength and effects, from mild sedatives to powerful antipsychotic medications.

Fluoxetine

An antidepressant medication in the selective serotonin reuptake inhibitor (SSRI) class, used to treat depression and other mental health conditions.

Xanax

A brand name for alprazolam, a prescription medication used to treat anxiety and panic disorders.