1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
inysia [295]
2 years ago
11

The equation of exchange, M×V=P×Q , relates to the quantity theory of money. In this equation, M represents the supply of money,

V represents the velocity of money, P represents the price level, and Q is real output.
Which of the statements describes an implication of this equation in the long run?

Money supply increases (ΔM) will directly increase real GDP.

Changes in the money supply (ΔM) will balance out with changes in prices (ΔP) .

Changes in the money supply (ΔM) will balance out with changes in velocity (ΔV) .

Both money supply (M) and money velocity (V) are held constant.
Social Studies
2 answers:
Alex_Xolod [135]2 years ago
8 0
Changes in the money supply (ΔM) will balance out with changes in prices (ΔP)

The classical viewpoint of the quantity theory of money is that in the long run, assuming full employment, money velocity in real output are fixed. As these are on either side of the equation, the key inside of the quantity theory of money is that any increases or decreases in the supply of money on the left hand side of the equation will balance out with changes in prices on the right hand side of the equation. That is, in the long run, increasing the money supply causes inflation.
deff fn [24]2 years ago
8 0

Answer:

Changes in the money supply (ΔM) will balance out with changes in prices (ΔP)

The classical viewpoint of the quantity theory of money is that in the long run, assuming full employment, money velocity in real output are fixed. As these are on either side of the equation, the key inside of the quantity theory of money is that any increases or decreases in the supply of money on the left hand side of the equation will balance out with changes in prices on the right hand side of the equation. That is, in the long run, increasing the money supply causes inflation.

Explanation:

You might be interested in
What is the name for dumplings from nepal and tibet?
marissa [1.9K]

Answer:

momo

Explanation:

Momo is the name for dumplings from nepal and tibet

4 0
2 years ago
Why is the lawmaking function of Congress central to democracy?
lbvjy [14]

The answer is: because it is the means by which public will becomes public policy.

Members of the congress are elected by the citizens in order to carried out their aspiration to the lawmaking process.

The citizens cannot force their will to the government and directly vote for the law that must be passed by the government. BUT , they can elect a congress who has similar goals, value, principles as them and trust that congress to make the best possible decision for them.

Because of this, we can say that the lawmaking function of congress is an important means to make public will to become public policy.

8 0
3 years ago
Please help me! Ill give brainly
Sveta_85 [38]

Answer: that's not social studies but the answer is that the roots find their way to the water by sensing vibrations from the water

Explanation:

3 0
3 years ago
Read 2 more answers
For some people, hearing certain sounds may activate color-sensitive regions of the cortex so as to trigger a sensation of color
ladessa [460]

Answer: Synaesthesia

Explanation:

Synaesthesia  is disorder state in which senses of the body get linked with each other that was not connected previously. This condition produces automatic response in another sense organ when simulation takes place in a particular sense organ.

This neurological disorder can occur in a person through inheritance at time of birth or early stage of childhood.Example of synaesthesia are individual feeling sensation on body while smelling certain fragrance or odor, seeing sounds etc.

4 0
3 years ago
What is the act or process of explaining the meaning of something
labwork [276]

Answer: Explanation

Explanation: Explanation is to explain or tell the meaning of something

8 0
3 years ago
Read 2 more answers
Other questions:
  • Addie has weekly spelling tests. on monday, she gets the list of 10 words and realizes she knows how to spell four of the words.
    6·1 answer
  • What year does mexico become independent
    15·2 answers
  • Using complete sentences, explain the difference between the major economic activities of Western Europe and those of Eastern Eu
    8·2 answers
  • Hannah was awarded $5 million in damages in a malpractice case against Batlock, the lawyer. Batlock's attorney filed a motion fo
    8·1 answer
  • The theoretical framework of psychology known as structuralism had two major problems. One was that highly trained introspection
    10·1 answer
  • When price changes, one should expect a change in
    13·1 answer
  • Another name for false productivity is
    15·1 answer
  • The Flexner report was spurred by the fact that: Group of answer choices The thousands of medical schools in North America had l
    9·1 answer
  • Why does Stalin write this ? What was the purpose of Stalin writing?
    12·2 answers
  • Which statement best describes what governs interorganizational coordination during domestic operations?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!