Velocity is not constant if
A. the money supply does not depend on the interest rate.
B. the demand for money depends on the interest rate.
C. the supply of money depends on the interest rate.
D. the price level increases as aggregate output increases.
Answer: B
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Over long periods of time, the CPI and PPI generally reflect the ______ rates of inflation
Fill in the blank(s) with the appropriate word(s).
Refer to Figure 6.4. If a market experiences excess supply and fails to maximize total surplus, a minimum price must have been set at:
A. A. B. B. C. C. D. There is not sufficient information.
Tax rebates such as those approved in 2003 might be
A. saved in the form of increased bank account balances. B. used to pay down existing consumer debt. C. spent on consumption goods. D. all of the options are correct.
In factor, or input, markets
A. firms demand resources. B. consumers purchase products. C. firms supply goods. D. households demand goods.