The Quantity Theory of Money Implies That a 3% Increase

question 166

Multiple Choice

The quantity theory of money implies that a 3% increase in the money supply will eventually cause

• A) a 3% increase in real GDP.
• B) a 3% increase in disposable income.
• C) a 3% increase in the price level.
• D) a 3% decrease in the unemployment rate.

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Definitions:

Temperature

A measure of the degree of internal heat or thermal energy in a substance or environment, often indicated in degrees Celsius (°C), Fahrenheit (°F), or Kelvin (K).

Incomplete Dominance

A genetic situation in which two alleles produce a phenotype that is a blend of both parental traits.

Codominant

Codominant refers to a genetic scenario where two different alleles of a gene are expressed equally in the phenotype of a heterozygote.

Recessive

A term for a gene that directs the development of a particular characteristic only if the corresponding gene on the other chromosome matches it—i.e., is the same allele.