The equation of exchange is an ________ while the quantity theory of money is a theory that ________
A) accounting identity; assumes the money supply is constant
B) accounting identity; assumes velocity is held constant
C) accounting theory; assumes the price level is constant
D) accounting theory; economists use to explain changes in real GDP
B
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Tobin's q is
A) the ratio of a firm's market value on the stock and bond markets to the replacement cost of its capital stock. B) the ratio of a firm's gross investment to its capital stock less its replacement cost of capital. C) a firm's replacement cost of capital less its value on the stock and bond markets. D) the ratio of a firm's replacement cost of capital to its gross investment.
Which of the following effects will not increase (i.e., shift to the right) the aggregate supply curve?
a. An increase in the average national price level. b. A decrease in the price of fuel. c. An appreciation of the domestic currency. d. All of these answers are correct. e. None of these answers is correct.
Because a monopolist is the sole producer in its market, it can necessarily alter the price of its good (i) without affecting the quantity sold. (ii) without affecting its average total cost. (iii) by adjusting the quantity it supplies to the market
a. (ii) only b. (iii) only c. (i) and (ii) only d. (ii) and (iii) only
Which of the following is an appropriate policy for the Fed to pursue if it wants to increase the money supply?
A) raise the reserve requirement B) raise the discount rate C) buy U.S. Treasury bills D) lower taxes