The equation of exchange is a(n)
a. identity relating the volume of transactions at current prices to the stock of money times the turnover rate of each dollar.
b. "truism" and by itself does not explain the variables it contains.
c. identity relating the volume of transactions at base year prices to the stock of money times the turnover rate of each dollar.
d. Both a and b
e. Both b and c
D
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During an economic downturn, Keynes argued that businesses would:
A. not increase spending because of the sharp rise in interest rates. B. not increase spending even if interest rates fell all the way to zero. C. increase spending because interest rates would fall to zero. D. increase spending because of the sharp rise in interest rates.
Which of the following is true?
A) All of the above are true. B) The parents of successful entrepreneurs almost always have at least a college education. C) Successful entrepreneurs are good at discovering profitable opportunities that have been overlooked by others. D) Entrepreneurs are under-represented among millionaires.
Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. Because the restaurant industry is considered monopolistic competition, it is expected that in the long run, restaurant franchise owners earn:
A. zero economic profits. B. positive economic profits. C. zero accounting profits. D. negative accounting profits.
If Gross Domestic Product (GDP) equals $900 billion, gross private investment expenditures are $200 billion, exports equal imports, and government spending is $400 billion, then
A. consumption expenditures are $200 billion. B. we cannot determine what expenditures on consumption are without more information. C. consumption expenditures are $300 billion. D. spending on consumer durables must be $400 million.