Assume there are 75 transactions a year in an economy with a money supply of $300 . If the average value of each transaction is $20, then the velocity of money is
a. 1/2.
b. 1
c. .2
d. 20.
C
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The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers if the
A) supply is perfectly elastic. B) supply is perfectly inelastic. C) demand is perfectly elastic. D) None of the above answers is correct.
According to economists Robert Lucas and Thomas Sargent, the apparent short-run trade-off between unemployment and inflation in the 1950s and 1960s was the result of
A) unexpected changes in fiscal policy. B) unexpected changes in monetary policy. C) expected changes in monetary policy. D) expected changes in fiscal policy.
A currency's role as an international unit of account is due to
A) invoicing costs. B) transaction costs. C) information costs. D) intervention costs.
A firm that is the sole producer of a good or service with no close substitutes is called a:
A. perfectly competitive firm. B. monopolist. C. oligopolist. D. monopolistically competitive firm.