In the strict monetarist view, a large increase in the money supply will have:
A. A large impact on the velocity of money and a large impact on nominal output
B. A large impact on the velocity of money and a small impact on nominal output
C. No effect on the velocity of money and a large impact on nominal output
D. No effect on the velocity of money and a small impact on the nominal output
C. No effect on the velocity of money and a large impact on nominal output
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Since 1802, the American stock market has yielded an average annual real return (the return adjusted for inflation) of approximately
a. 3 percent. b. 5 percent. c. 7 percent d. 11 percent.
If the government's provision of a subsidy is too large to counteract the entire effect of a positive externality, the:
A. total surplus will be maximized. B. quantity consumed will become even lower. C. quantity consumed will become too high. D. None of these statements is true.
Sticky wages:
A. slow economic recoveries but decrease the costs that unemployed workers bear. B. speed economic recoveries but increase the costs that unemployed workers bear. C. slow economic recoveries and increase the costs that unemployed workers bear. D. speed economic recoveries and decrease the costs that unemployed workers bear.
Investment is
A. a flow concept and is made up of fixed investment. B. a flow concept and is made up of fixed investment and inventory investment. C. a stock concept and is made up of fixed investment and inventory investment. D. a stock concept and is made up of fixed investment.