28. According to the quantity equation, whenever the supply of money is growing at a positive rate, if real income is constant, then the price level: is growing at the same rate as the growth of the supply of money O is decreasing O is constant

28. According to the quantity equation, whenever the supply of money is growing at a positive rate, if real income is constant, then the price level: is growing at the same rate as the growth of the supply of money O is decreasing O is constant

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 11RQ: As a general rule, is it safe to assume that a change in the price of a good will always have its...

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which is correct answer?

28. According to the quantity
equation, whenever the supply of
money is growing at a positive
rate, if real income is constant,
then the price level:
is growing at the same rate as the
growth of the supply of money
O is decreasing
O is constant
grows at a lower rate than the growth of
the supply of money

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