According to the Classical Dichotomy,when the Money Supply Doubles,which of the Following

question 43

Multiple Choice

According to the classical dichotomy,when the money supply doubles,which of the following also doubles?

• A)the price level
• B)nominal wages
• C)nominal GDP
• D)All of the above are correct.

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Definitions:

Active Market

A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Non-performance Risk

Non-performance risk is the risk that a counterparty will not fulfil their contractual obligations, affecting the valuation of financial instruments.

Credit Risk

The possibility that a lender may not receive the owed principal and interest, leading to a loss.

Valuation Measures

Techniques or methods used to assess the worth or value of a business, asset, or investment, often based on financial metrics or future earning potential.