According to the Assumptions of the Quantity Theory of Money,if

question 64

Multiple Choice

According to the assumptions of the quantity theory of money,if the money supply increases 5 percent,then

• A)both the price level and nominal GDP would rise by 5 percent.
• B)the price level would rise by 5 percent and nominal GDP would be unchanged.
• C)the price level would be unchanged and nominal GDP would rise by 5 percent.
• D)both the price level and nominal GDP would be unchanged.

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Definitions:

Generalization

The tendency to respond in the same way to different but similar stimuli, often used in learning theories.

Categorization

The mental process of grouping similar items or ideas together to organize them efficiently.

Discrimination

Discriminatory behavior towards various categories of individuals or things, mainly due to their race, age, or sex.

Biofeedback

A therapeutic technique that teaches individuals to control bodily processes that are normally involuntary, such as heart rate or blood pressure, through the use of electronic or other instruments.