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:

Enriched Education

An educational approach that aims to provide students with experiences above and beyond the standard curriculum, often including more interactive, hands-on learning activities.

Disadvantaged

Lacking in the necessary resources, qualities, or conditions for success or development compared to others in a society.

Heritability

A measure in genetics that indicates how much of the variation in a trait in a population can be attributed to genetic differences among individuals within that population.

IQ

An intelligence quotient, a measure of a person's cognitive abilities compared to the population, usually determined by standardized tests.