Which of the following developments will most likely lead to an increase in the velocity of money?
a. a decrease in the expected inflation rate
b. an increase in money interest rates
c. a sharp decline in using credit cards
d. a decrease in real income
B
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Firms maximize profit when
A) the additional benefit from producing a good equals the additional cost of producing that good. B) MR = MC. C) the derivative of the profit function with respect to output is zero. D) All of the above.
One way the government decides how to pay for public goods is:
A. how easy it is to exclude people who don't pay. B. determining who uses the good the most and increasing their property taxes. C. comparing individual's marginal benefits of the good. D. polling the public about the most appropriate funding measures.
In August of this year, Jack can best estimate the current year's GDP by:
A. multiplying the most recent quarter's GDP estimate by four. B. adjusting the first two quarterly estimates of GDP for seasonal variation. C. taking an average of the last four quarterly estimates of GDP available. D. looking back at previous years GDP in order to make an accurate projection.
Our balance on current account
A. has recently turned negative. B. has been negative for years. C. has recently turned positive. D. has been positive for years.