When British soldiers in German prisoner of war camps during World War I smoked the best cigarettes and used the low-quality ones as money, they were obeying
a. Gresham's law that says bad money drives out good money
b. Gresham's law that says good money drives out bad money
c. the classical law that says bad money drives out good money
d. the classical law that says velocity affects money
e. Weldon's law that says velocity affects money
A
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If the supply of automobiles becomes more inelastic, then a tax on automobiles is
A) paid more by the buyers after the change than before. B) paid more by the sellers after the change than before. C) always split evenly between the buyers and the sellers. D) paid more by the government after the change than before. E) always paid entirely by the buyers.
An increase in labor force participation will increase output and living standards at the cost of
a. higher taxes b. higher interest rates c. longer work weeks d. foregone leisure time e. higher exports
Which of the following decreases the demand for money?
A) an increase in income B) an increase in real GDP C) a decrease in the price level D) expectations of higher bond prices
In a business cycle, a peak represents the end of
A. a trough. B. a recession. C. a depression. D. an expansion.