Assume Nominal GDP = PY, and =

question 126

Multiple Choice

Assume nominal GDP = PY, and = the proportion of nominal income that the nation holds (demands) as money to cover its transactions. Because nominal money supply equals nominal money demand, then:

• A) increases in nominal income cause an increase in the money supply.
• B) decreases in nominal income cause an increase in the money supply.
• C) price increases cause an increase in the money supply.
• D) an increase in the money supply causes a proportional increase in nominal income.

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Definitions:

Self-report Measure

A type of psychological assessment where individuals provide subjective reports on their own thoughts, feelings, behaviors, and perceptions, commonly used in surveys and questionnaires.

Personality Psychology

The study of individual differences in characteristic patterns of thinking, feeling, and behaving.

Descriptive Statistics

Statistical procedures used to summarize, organize, and simplify data.

Mean

A measure of central tendency that is calculated by dividing the sum of values in a dataset by the number of values in the dataset, often referred to as the average.