The relationship between the velocity of money and interest rates is:
A. negative and stable.
B. negative but not stable.
C. positive but not stable.
D. positive and stable.
Answer: C
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What will be an ideal response?
According to new classical economists,
a. deficits should have a large and negative impact on output. b. deficits should have no discernable impact on output. c. deficits will have no impact on private consumption. d. growth in the 1990s was driven by falls in the deficit. e. None of the above
One policy the government can use to remedy the effects of pollution caused by the production of a good is to
a. lower the price of the good b. create positive externalities to compensate for the negative ones c. levy a tax on each unit of the good produced d. create free riders e. increase the production of the polluting good
The largest of the regional Federal Reserve Banks is located in:
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