Answer:
9. What does the evidence from hyperinflations indicate with respect to the quantity theory of money is:
As per the quantity theory of money as the money supply in the market increases that will also increase the inflation and the price level in the market.
the answer is "A"
(a.) Evidence shows that money growth and inflation moved together, which supports the quantity theory
9. What does the evidence from hyperinflations indicate with respect to the quantity theory of money?...
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 move...
What does the evidence from hyperinflations indicate with respect to the quantity theory of money? Evidence shows that money growth and inflation moved together, which supports the quantity theory Evidence shows that money growth and inflation moved together, which does not support the quantity theory Evidence shows that money growth and inflation did not move closely with each other, which supports the quantity theory Evidence shows that money growth and inflation did not move closely with each other, which does...
Which statement best defines the velocity of money? (1 mark) a. It is the rate at which the central bank puts money into the economy. b. It is the long-term growth rate of the money supply. c. It is the money supply divided by nominal GDP. d. It is the average number of times per year a dollar is spent. In the 1970s, in response to recessions caused by an increase in the price of oil, the central banks in...
10. An assistant professor of economics gets a $100-a-month raise, but then she figures that with her current monthly salary she can't buy as many goods as she could last year. What has happened to her real and nominal wage? (1 mark) er real and awaren lerroan were alle eral wa t erminal wage has eral wage has fallen bu hermal wage has 11. Which statement best defines the velocity of money? (1 mark) e the gam sem of the...
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...
9:02 ร LTE 25. Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased c. your real wage increase. If your real wage...
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i dont know how to do #12 or #13 Section 3: Quantity Theory of Money (3 parts, 17.5 points total) Suppose that velocity is constant, nominal GDP is growing by 4% per year, the nominal interest rate is sy and the real interest rate is 1%. Using the quantity theory of money, the fisher equation, and the classical dichotomy, answer the following questions about the long-run. Mark your answers on the scantron form. No need to show work for i),...
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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...