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

question 190

Multiple Choice

According to the assumptions of the quantity theory of money,if the money supply decreases by 7 percent,then

• A)nominal and real GDP would fall by 7 percent.
• B)nominal GDP would fall by 7 percent;real GDP would be unchanged.
• C)nominal GDP would be unchanged;real GDP would fall by 7 percent.
• D)neither nominal GDP nor real GDP would change.

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Definitions:

Post-formal

A stage of cognitive development succeeding Piaget's formal operational stage, characterized by the understanding that truth may vary from situation to situation and logic can be influenced by emotion.

Adult Stage

A phase in human development that follows adolescence and is characterized by full physical maturity and the assumption of roles related to employment, parenthood, or societal contributions.

Mature

Having reached full physical or mental development; showing qualities such as wisdom and responsibility that come with adulthood.

Pragmatic

relates to practical considerations or actions focused on dealing with the situations in a realistic manner.