According to the equation of exchange, if real Gross Domestic Product (GDP) is $25 billion, the money supply is $10 billion, and the price index equals 2, then the income velocity of money is

A. 5.
B. 10.
C. 25.
D. 50.


Answer: A

Economics

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Immigration can either benefit or harm a nation, depending on the following factors, except the:

A. Number of immigrants B. Education, skills, and work ethic of the immigrants C. Rate at which the immigrants can be absorbed by the society D. Blank

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It takes Ross 6 hours to produce a bushel of corn and 2 hours to wash and polish a car. It takes Courtney 6 hours to produce a bushel of corn and 1 hour to wash and polish a car. Courtney and Ross cannot gain from specialization and trade, since it takes each of them 6 hours to produce 1 bushel of corn

a. True b. False Indicate whether the statement is true or false

Economics

A decrease in input costs to firms in a market will result in a(n)

a. decrease in equilibrium price and an increase in equilibrium quantity.
b. decrease in equilibrium price and a decrease in equilibrium quantity.
c. increase in equilibrium price and a decrease in equilibrium quantity.
d. increase in equilibrium price and an increase in equilibrium quantity.

Economics

Use the following general linear demand relation:Qd = 100 - 5P + 0.004M - 5PRwhere P is the price of good X, M is income, and PR is the price of a related good, R.From the demand function it is apparent that related good R is

A. normal. B. inferior. C. a substitute for good X . D. a complement for good X.

Economics