When salaries are paid more frequently, the velocity of money speeds up because individuals hold more cash
a. True
b. False
Indicate whether the statement is true or false
False
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In the figure above, the line of equality is
A) curve A. B) curve B. C) curve C. D) curve D.
John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000 and there is a 10 percent chance of losing it all. John is
A) willing to pay any price for insurance. B) willing to pay no more than $2,000 for insurance. C) willing to pay no more than $3,000 for insurance. D) willing to pay $5,000 for insurance.
An increase in government spending that is NOT financed by an increase in taxes will cause which of the following?
A. an increase in interest rates and a reduction in planned investment B. an increase in interest rates and an increase in planned investment C. a reduction in interest rates and an increase in planned investment D. a reduction in interest rates and a reduction in planned investment
In economic terms, interest is the payment for
A) current command over resources. B) producers' goods. C) stocks. D) both consumer and capital goods.