Suppose MV = 60 & PQ = 120. Suppose Q and V are held constant. This means ________.
A. both M & V must double
B. V must double
C. M must double

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01-03-2018
Computers and Technology

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Suppose MV = 60 & PQ = 120. Suppose Q and V are held constant. This means ________.
A. both M & V must double
B. V must double
C. M must double

Respuesta :

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jamuuj jamuuj · Answer 1 · 2018-03-10T11:26:13+01:00

jamuuj jamuuj

10-03-2018

The correct answer is C. M must be doubled. The quantity theory of money assumes that both V and Q are stable and hence will be constant. Therefore, when V an Q are constant in the equation MV=PQ, M will be directly proportional to P. Using that theory M must be double for it to be equal to P.

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Suppose MV = 60 & PQ = 120. Suppose Q and V are held constant. This means ________. A. both M & V must double B. V must double C. M must double

Respuesta :

Otras preguntas

Suppose MV = 60 & PQ = 120. Suppose Q and V are held constant. This means ________.
A. both M & V must double
B. V must double
C. M must double