As Monetarists View the Equation of Exchange

question 31

Multiple Choice

As monetarists view the equation of exchange:

• A)V changes erratically, in that it may either rise or fall in response to a given change in M
• B)V is quite stable
• C)V usually changes in the same direction of any given change in M
• D)V usually changes in the opposite direction of any given change in M
• E)V changes in the same direction as M when M is increasing, but in the opposite direction when M is decreasing

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Definitions:

Coil

Represents the output of a programmable logic controller. In the output devices, it is the electrical coil that, when energized, changes the status of its corresponding contacts.

Reed Switches

Electromechanical devices that open or close contacts in response to a magnetic field.

Magnetism

A physical phenomenon produced by the motion of electric charge, which results in attractive and repulsive forces between objects.

Dual-in-line Package

A standard electronic device package with a rectangular housing and two parallel rows of electrical connecting pins.