In the equation of exchange MV = PQ, V stands for
a. inventory turnover.
b. total transactions in the economy.
c. average rate of turnover of the money supply.
d. variation in interest rates.
c. average rate of turnover of the money supply.
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Models must
A) be able to yield useable predictions. B) be totally realistic in every detail. C) be a complete reproduction of the real world. D) include every relationship that exists.
The discount rate utilized in public sector budgeting performs the functions of:
a. allocating funds between the public and private sectors b. allocating funds between present consumption and investment (i.e., future consumption) c. allocating funds between debt and equity securities d. a and b only e. none of the above
Marginal willingness to pay a. rises as greater quantities are consumed
b. falls as greater quantities are consumed. c. stays the same as greater quantities are consumed. d. none of the above
If the interest rate is below the Fed's target, the Fed would
a. buy bonds to increase the money supply. b. buy bonds to decrease the money supply. c. sell bonds to increase the money supply. d. sell bonds to decrease the money supply.