Other things remaining the same, an increase in the real risk-free interest rate causes the velocity of money to:
a. Rise.
b. Fall.
c. Not change.
.A
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In the United States, the most commonly cited measure of the price level is the consumer price index
Indicate whether the statement is true or false
The zero sum fallacy refers to
a. You gaining only if someone else loses b. The allocation of the pieces of the total economic pie- if you eat the piece, I cannot consume it c. Ignores the possibility of the total pie growing itself d. All of the above
According to the adaptive expectations theory, people form their expectations of the future on the basis of future expectations
a. True b. False Indicate whether the statement is true or false
When a tax is imposed in a market, it will a. alter the behavior of buyers
b. alter the behavior of sellers. c. have no effect on the behavior or either buyers or sellers. d. affect the behavior of both buyers and sellers.