Answer:
affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.
Explanation:
This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:
MV = PQ
- M = quantity of money
- V = velocity of money
- P = price level
- Q = quantity of goods
Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:
- the velocity of money has to be constant (AND IT IS NOT CONSTANT)
- real output is independent on money supply (NOT TRUE)
- causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)
Difference between the Us Dollar. 1 US dollar is .86 Euro
Answer:
The correct answer is letter "A": in both statements I and II.
Explanation:
(I) According to the demand law, <em>if the price of tea increases the quantity demanded of tea will decrease</em>. If the price of tea decreases, the quantity demanded of tea will increase. Quantity demanded and the price has an inversely proportional relationship in the demand law.
(II) When talking about complementary goods like tea and sugar, <em>if the price of tea increases will result in a negative movement along the demand curve of tea and will cause the demand curve of sugar to move inwards. In such a scenario, the demand for each good will be reduced.</em>
Answer:
The book gives a clear knowledge of marketing at both the strategic and conceptual level as well as the ____.
tactical, hands-on level
Explanation:
At the highest level of marketing management is the strategic level, which is more conceptual. Down the scale is the tactical marketing plan, which specifies the marketing tools and techniques which a company will use to meet its marketing goals. At this level, the tactical tools in use include advertising, sales promotions, and other activities that directly implement the strategic marketing plan. The tactical level reduces the business strategic goals to marketing objectives.
