Which of the Following Statements Is False

question 125

Multiple Choice

Which of the following statements is false?

• A) The exchange equation assumes that velocity is constant.
• B) Velocity is the average number of times a dollar is spent to buy final goods and services in a year.
• C) The simple quantity theory of money predicts that changes in the money supply lead to strictly proportional changes in the price level.
• D) In the simple quantity theory of money the aggregate supply curve is vertical.

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Definitions:

Debt Covenants

Agreements or clauses within a debt contract that impose certain conditions or restrictions on the borrowing party, aimed at protecting the lender.

Merger Target

A company that is considered a potential candidate for acquisition by another company.

Repayment Capacity

A measure of a borrower's ability to repay both the principal and interest on a loan.

Earnings Benchmarks

financial targets or standards used to evaluate a company's performance, often compared against past achievements or industry averages.