Velocity is commonly calculated by which of the following formulas?
a. (Value of money stock)/(Value of nominal GDP)
b. (Value of transactions)/(money stock)
c. (Value of financial transactions)/(GDP)
d. (Value of output)/(Value of input)
b
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Explain why bond prices and interest rates are inversely related
In a closed economy with output fixed, an increase in government spending matched by an equal increase in taxes will:
A. increase consumption. B. increase the interest rate. C. increase investment. D. leave all other variables unchanged.
An individual owns a $100,000 home. She determines that her chances of suffering a fire in any given year to be 1/1000 (0.001). She correctly calculates her expected loss in any year to be $100. Explain why this really isn't a good way to measure her potential for loss.
What will be an ideal response?
An increase in the world price of oil will result in...
What will be an ideal response?