The money supply and velocity of money tell us the:
A. price value of real output.
B. real output.
C. nominal value with inflation accounted for.
D. nominal value of firm output.
A. price value of real output.
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Refer to the scenario above. If both firms operate without government intervention:
A) total costs are maximized. B) total profits are maximized. C) marginal revenues of both the firms are maximized. D) marginal revenues of both the firms are minimized.
Which of the following policies would be most likely to encourage households to save more?
a. Significant reductions in the social safety net b. Increasing social security benefits to all recipients, regardless of their contribution into the system c. Elimination of the tax deduction on individual retirement account (IRA) contributions d. Replacement of sales and excise taxes with an income tax e. Elimination of government insurance of bank deposits
If the Japanese central bank performed a sterilized intervention to reduce the value of the yen, the most likely result is:
A) a lower value of the yen due to an increase in the monetary base in Japan. B) a lower value of the yen due to a decrease in Japanese interest rates. C) a higher value of the yen since the intervention was sterilized. D) no change in the value of the yen since neither the monetary base nor Japanese interest rates would be affected.
The fact that the United States has become a net debtor nation is an indication that
A. As undesirable as they are, trade restrictions are becoming a necessity. B. The United States should never have abandoned the gold standard. C. The U.S. economy is highly regarded by world investors. D. The U.S. economy is in a long-term decline compared to other major economies.