The Assumption of Constant Velocity in the Quantity Equation Is

question 40

Multiple Choice

The assumption of constant velocity in the quantity equation is the equivalent of the assumption of a constant:

• A) short-run aggregate supply curve.
• B) long-run aggregate supply curve.
• C) price level in the short run.
• D) demand for real balances per unit of output.

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Definitions:

Ordinary Interest

A method for calculating interest based on a 360-day year.

360-Day Year

A 360-day year is an accounting practice that treats each month as having 30 days, simplifying interest calculations in the financial industry.

Total Amount

The aggregate sum resulting from the addition of numbers, amounts, objects, etc.

Ordinary Interest

Interest calculation based on a 360-day year, often used in banking and finance, as opposed to real interest which is based on a 365-day year.