A rising rate of inflation:
a. makes people more willing to hold money as an asset
b. reduces the usefulness of money as a store of value and thus increases the velocity of money.
c. increases the usefulness of money as a medium of exchange and thus reduces the velocity of money.
d. is usually preceded by a reduction in the money supply.
e. does not have any effect on the velocity of money.
b
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Which of the following is true?
a. Economic freedom is present if a country is a political democracy. b. Economic freedom ratings indicate the consistency of a nation's institutions and policies with personal choice, freedom of exchange, and protection of private property. c. Economies that are highly free tend to grow less rapidly than those with less economic freedom. d. All of the above are correct.
Because pollution taxes raise production costs, the ________ curve ________.
A. supply; shifts to the right B. supply; shifts to the left C. supply; does not change D. demand; shifts to the right
In recession years, ________ jobs are lost than created, and vacancies and job openings ________.
A. fewer; increase B. more; decline C. fewer; decline D. more; increase
In 2012, total government spending (comprising purchases and transfers) in the U.S. was about:
A. 10 percent of the economy's total output B. 35 percent of the economy's total output C. 60 percent of the economy's total output D. 75 percent of the economy's total output