If the money supply is $250 billion and nominal GDP is $1 trillion, the velocity of money is:
A. 0.25.
B. 0.40.
C. 2.50.
D. 4.00.
Answer: D
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Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve international borrowing/investing in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more negative (or less positive). b. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/investing becomes more negative (or less positive). c. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve international borrowing/investing remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The opportunity cost to a consumer who smokes cigarettes consists of the:
A. Costs imposed on others who inhale second-hand smoke B. Products that the consumer could have bought instead of cigarettes C. Amount of cigarette-taxes paid by this consumer D. Cost of complementary products such as lighters, ashtrays, and cigarette holders
Answer the following statements true (T) or false (F)
1. According to the legal cartel theory of regulation, firms desire to have government regulation because it protects them from competition. 2. Most economists conclude that deregulation has reduced prices and led to more competition in deregulated industries. 3. Social regulation consists of regulating the behavior of people in society in order to promote the safety and harmony in neighborhoods. 4. One good example of a government agency involved mainly in social regulation is the Food and Drug Administration. 5. Supporters of social regulation contend that it has provided net benefits to society in the form of greater safety, a better environment, and less discrimination.
Do food stamps affect the slope of the budget constraint of their recipients or rather shift the budget constraint? Explain
What will be an ideal response?