According to Crude Versions of the Quantity Theory of Money

question 218

Multiple Choice

According to crude versions of the quantity theory of money

• A)the income velocity of money is highly variable in the short run.
• B)a full employment rate of output is not characteristic of market equilibrium.
• C)a 10-percent increase in the money supply will result in a 10-percent increase in the price level.
• D)a 25-percent decrease in the money supply will result in a 25-percent decrease in velocity.
• E)speculative motives are the major sources of the demand for money.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist known as the founding father of psychoanalysis, a method for treating psychopathology through dialogue.

Neo-Freudians

A group of psychologists who, while inspired by Freud's theories, extended his ideas to include social and cultural factors in personality development and dynamics.

Psychoanalysis

A method of psychological therapy and analysis developed by Sigmund Freud, which emphasizes unconscious mental processes and childhood experiences as determinants of psychological health.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as determinants of human behavior.