It is difficult to test whether the velocity of money is constant over time because
A. there is only one definition of the money supply.
B. there has been very little variation in the money supply over time.
C. there may be a time lag between a change in the money supply and its effects on nominal GDP.
D. it is difficult to measure the value of nominal GDP over time.
Answer: C
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All of the following are point sources, EXCEPT
a. publicly-owned treatment works (POTW) b. factory smokestack b. recreational motor boat d. urban runoff
Suppose a market has the demand function Qd=20-0.5P. At what price will total revenue be maximized?
Which statement about loans is true?
a. Banks use their secondary reserves to make loans. b. When banks loan money to borrowers, they make the economy more liquid. c. By creating loans, banks decrease demand deposits. d. When a loan is made, the borrower experiences an increase in wealth.
The natural rate of unemployment can change over time. Predict how you think the natural rate of unemployment will change during your lifetime. Explain how you arrived at your conclusion.
What will be an ideal response?