MGEA06H3 Study Guide - Final Guide: Quantitative Easing

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEA06H3
• Professor: Iris Au

Document Summary

According the quantity theory of money, if the monetary growth rate is 5% and the percentage change in velocity is 0%, then the inflation rate would be equal to 5%. true/false/uncertain, explain. Some argue that these changes would increase the long-run price level. true/false/uncertain, explain. During war times, cigarettes are often used as a medium of exchange in the prisoner-of-war (pow) camps because they satisfy a number of criteria for good money. Explain: on some occasions the prisoners knew in advance when the cigarette shipments were to arrive.