ZuoTi.Pro
Question

Assuming that V is constant, what could result from an increase in M in the quantity...

  1. Assuming that V is constant, what could result from an increase in M in the quantity equation?
  1. a decrease in the price level
  2. an increase in real GDP
  3. a decrease in nominal GDP
  4. an increase in the price level
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

"D"

In the quantity equation V and Y are mostly considered as constant and an increase in the money supply will lead to an increase in the price level. the answer is "D".

0 0
Add a comment
Know the answer?
Add Answer to:
Assuming that V is constant, what could result from an increase in M in the quantity...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 10. Which of the following statements is (are) correct? (x) The quantity equation is specified as...

    10. Which of the following statements is (are) correct? (x) The quantity equation is specified as MXV = PxY. Where P is the price level, M is the money supply V is the velocity of money. Y is real output and PX Y is nominal output. ly) The velocity of money is the calculated as the average number of times per year a dollar is spent (z) Based on the quantity equation, if P = 3.0. Y = 1,000 million,...

  • 9. What does the evidence from hyperinflations indicate with respect to the quantity theory of money?...

    9. What does the evidence from hyperinflations indicate with respect to the quantity theory of money? (1 mark) a. Evidence shows that money growth and inflation moved together, which supports the quantity theory. b. Evidence shows that money growth and inflation moved together, which does not support the quantity theory. c. Evidence shows that money growth and inflation did not move closely with each other, which supports the quantity theory. d. Evidence shows that money growth and inflation did not...

  • Question 31 (1 point) According to the quantity equation, if Y and M are constant and...

    Question 31 (1 point) According to the quantity equation, if Y and M are constant and V doubles, what factor does the price level multiply by? 2 1/2 1/4 Question 32 (1 point) Velocity in country of Nemedia always stable. In 2014, the money supply was $100 billion and GDP was $300 billion. In 2015, the money supply increased by 10 percent, real GDP increased by 5 percent. By how much did the price level increase between 2014 and 2015?...

  • According to the quantity equation, if Y and M are constant and V doubles, what factor...

    According to the quantity equation, if Y and M are constant and V doubles, what factor does the price level multiply 11 000,

  • 080302 Monetary neutrality implies that an increase in the quantity of money will increase employment increase...

    080302 Monetary neutrality implies that an increase in the quantity of money will increase employment increase the price level increase the incentive to save. not increase any of the above. QUESTION 5 080304 The classical dichotomy argues that changes in the money supply affect both nominal and real variables. affect neither nominal nor real variables. affect nominal variables, but not real variables. do not affect nominal variables, but do affect real variables. QUESTION 6 080305 According to the principle of...

  • Using the quantity Theory of Money formula, suppose that in 2020: Money supply = $50 Billion;...

    Using the quantity Theory of Money formula, suppose that in 2020: Money supply = $50 Billion; Nominal GDP = $1.0 Trillion; and Real GDP = $500 Billion. a). Calculate the Price Level (P) and Velocity of Circulation (V) . Show your calculations for a full mark. b) Suppose the velocity of circulation is constant (the one you calculated in (a), and the economy’s output of goods and services increases by 5% annually. Calculate Nominal GDP (or what will happen to...

  • According to the quantity equation, if velocity is stable, an increase in the money supply of...

    According to the quantity equation, if velocity is stable, an increase in the money supply of three percent and an increase in real GDP of four percent causes the price level to rise by one percent. true false Money demand refers to how much wealth people want to hold in liquid form and money demand depends on both the price level and the interest rate true false Bertha gives her employees a $1 increase in their hourly wage. However, the...

  • Using the quantity theory of money, suppose V is constant, money M grows at 12%, real...

    Using the quantity theory of money, suppose V is constant, money M grows at 12%, real income Y grows at 4%, and the nominal interest rate is 11%. a) What is the real interest rate? b) Now suppose that real income grows at 6% and money supply growth remains at 12%, what is the real interest rate? c) What must be the new money growth rate to maintain the real interest rate at the level from part (a)?

  • Using the quantity Theory of Money formula, suppose that in 2020: Money supply = $50 Billion;  Nominal...

    Using the quantity Theory of Money formula, suppose that in 2020: Money supply = $50 Billion;  Nominal GDP = $1.0 Trillion; and Real GDP = $500 Billion. a). Calculate the Price Level (P) (2 marks) and Velocity of Circulation (V) (2 marks).  Show your calculations for a full mark. b) Suppose the velocity of circulation is constant (the one you calculated in (a), and the economy’s output of goods and services increases by 5% annually. Calculate Nominal GDP (or what will happen...

  • The 2008-2009 recession must have been a result of ________ because otherwise the combination of the...

    The 2008-2009 recession must have been a result of ________ because otherwise the combination of the ________ cannot be explained. Question 29 options: a decrease in AD and an increase in AS; fall in the price level and the decrease in real GDP a decrease in AD and an increase in AS; rise in the price level and the decrease in real GDP an increase in AD and AS; rise in the price level and the decrease in real GDP...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT