21. The quantity equation states that:?

Question

21. The quantity equation states that:

A. money times velocity equals nominal GDP.

B. money times velocity equals real GDP.

C. money times prices equals nominal GDP.

D. money times prices equals real GDP.

E. velocity times prices equals nominal GDP.

22. Financial systems in market economies improve the allocation of saving in each of the following ways EXCEPT by:

A. providing information about which potential use of funds will be most productive.

B. helping savers to share the risk of individual investment projects.

C. evaluating the potential productivity of alternative capital investments.

D. making savings available to risky, but potentially profitable projects.

E. allowing political favoritism to determine which projects are funded.

Answer 1

A. money times velocity equals nominal GDP.

E. allowing political favoritism to determine which projects are funded.

Answer 2

21. The quantity equation states that:

correct answer:

A. money times velocity equals nominal GDP.

22. Financial systems in market economies improve the allocation of saving in each of the following ways EXCEPT by:

correct answer is:

E. allowing political favoritism to determine which projects are funded.