The rationale for a monetary rule can be explained by using the equation of exchange if the changes in velocity equal the changes in the money supply and leave the price level (P) unchanged. velocity is assumed to be zero so that changes in the money supply equal changes in real output and leave the price level (P) unchanged. the changes in velocity equal the changes in real output and leave the price level (P) unchanged. velocity is assumed to be constant so that changes in the money supply equal changes in real output and leave the price level (P) unchanged. b. If velocity unexpectedly falls because of, say, a drop in investment spending by businesses, adherence to a monetary rule will require that there be a higher price level. cause interest rates to rise. not provide sufficient liquidity to provide for economic growth. result in too much liquidity to provide for economic growth.

1. the corporate form of business organization has an advantage over both the sole proprietorship and the general partnership in ease of 2. the corporate form of business organization has an advantage over both the sole proprietorship and the general partnership in external liability for business 3. a partnership is an association of two or more persons to carry on as co-owners a business for 4. any one partner may be held liable for the entire indebtedness of the 5. a limited partner is liable for the partnership debt only to the extent of her capital 6. a person may be a partner even though he has no authority to conduct the ordinary activities of the 7. a partner may withdraw his capital contribution without the consent of all the 8. when a partner sells his interest in the partnership, the buyer becomes a new 9.every partner owes a duty of good faith, fairness, and loyalty to the other 10. a partner who fails to use ordinary care and skill in discharging assigned duties will be personally liable to the partners for any resulting loss.