What is the velocity of money?
A) The rate at which GDP increases in a year
B) The speed of capital accumulation
C) The rate at which money circulates through an economy
D) The rate at which the Federal Reserve increases or decreases the money supply
E) The rate at which the aggregate price level increases
Answer: C) The rate at which money circulates through an economy
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The time lags, which must be either reduced or known with some precision if fiscal policy is to be an effective stabilizing technique, are the lags between
A) the beginning of a cyclical movement and its recognition. B) the decision that compensatory action should be taken and the enactment of tax or expenditure changes. C) the increase or decrease in net government receipts and their final effects on total spending. D) all of the above, because a significant miscalculation with respect to any of these lags could increase aggregate instability.
How do banks make profits?
Although the possibility exists for an economy to experience stagflation, it has never actually happened in the United States
Indicate whether the statement is true or false
Comparing the American healthcare system to other industrial nations, which of the following statements is FALSE?
A. Americans are admitted to the hospital with less frequency. B. Infant mortality rates are higher than in 80 percent of the other industrial countries. C. Childhood-immunization rates in the U.S. are lower. D. The American life expectancy is above average in comparison to other industrial nations.