The velocity of money is assumed to be constant in the Classical model because
A) the payment habits of the community.
B) fixed level of real GDP.
C) the demand for money varies with the level of real output.
D) aggregate demand is constant.
A
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Generally speaking, resources are used more wastefully and carelessly when
A) users obtain the resources through the market process. B) users do not have to pay the opportunity cost for using resources. C) users use resources to only advance the projects they are interested in. D) users privately own resources.
"The marginal rate of substitution of the good measured along the x-axis increases as a consumer moves downward along an indifference curve." Is the previous statement correct or not?
What will be an ideal response?
If parking is a very scarce commodity on your campus, but a parking lot with bus service is available at a distant location for no charge, what policy would you recommend to the president to increase the student use of this distant, but "free," lot?
Wage inequality has been on the rise in virtually all high-income industrial economies since the 1970s. The causes are probably numerous, but the leading explanation for the greatest share of the increase in inequality is
A) the growth of trade with developing countries. B) the growth of trade with other high income industrial countries. C) technological change which increased the relative demand for skilled workers. D) technological change which increased the relative demand for unskilled workers.