According to the Quantity Equation,the Price Level Would Change Less

question 164

Multiple Choice

According to the quantity equation,the price level would change less than proportionately with a rise in the money supply if there were also

• A)either a rise in output or a rise in velocity.
• B)either a rise in output or a fall in velocity.
• C)either a fall in output or a rise in velocity.
• D)either a fall in output or a fall in velocity.

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Definitions:

Miles

A unit of distance equal to 5,280 feet or approximately 1.609 kilometers.

Square Yard

a unit of area measurement equivalent to a square measuring one yard on each side.

Labor

The body of work performed by human beings, often in exchange for payment, significant in economics for its role in production.

Materials

Substances or components used in the production of goods or in the performance of services.