In the circular-flow diagram, which of the following items flows from firms to households through the markets for the factors of production?
a. goods and services
b. land, labor, and capital
c. dollars spent on goods and services
d. wages, rent, and profit
d
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If the amount of money in circulation is $180 billion and the value of the economy's total output is $540 billion, then the:
A. circulation period of money must be one-fourth of a year. B. velocity of money is 4. C. average price per final good sold is $3. D. velocity of money is 3.
Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of an increase in the U.S. money supply on the dollar/euro exchange rate
What will be an ideal response?
According to the above table, the value of M2 is
A) $3,807 billion. B) $5,237 billion. C) $6,237 billion. D) $6,253 billion.
The notion that a decline in tax rates and other incentives will spur individuals and firms to increase productivity is typically referred to as
A) demand-side economics. B) Ricardian equivalence. C) supply-side economics. D) Keynesian economics.