In the equilibrium version of the classical model, the velocity of money
a. depends on the real rate of interest.
b. depends on the level of employment.
c. is equal to the Cambridge k.
d. is stable in the short run.
D
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. If Stan plays his ideal mixture, Kyle's expected payoff is zero w
A) plays a pure strategy of "shoot 1." B) plays a pure strategy of "shoot 2." C) plays his ideal strategy. D) All of the above are correct.
Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase. b. shortage to exist and the market price of roses to decrease. c. surplus to exist and the market price of roses to increase. d. surplus to exist and the market price of roses to decrease.
A Keynesian economist would expect a supply-side tax cut to shift
a. only the aggregate supply curve outward. b. only the aggregate demand curve outward. c. both the aggregate demand and aggregate supply curves outward. d. the aggregate supply curve outward and the aggregate demand curve inward.
Preferred Budgets ($ in millions)567891011Number of voters (in thousands)61016201595Table 15.2Table 15.2 shows the preferred budget for a new civic center and the number of voters in a community who prefer that budget. If Jay proposed $7 million while David proposed $10 million, whose budget will be selected if everyone votes?
A. Jay's B. David's C. It will be a tie. D. The outcome cannot be predicted.