What do most economists think is the most accurate statement about velocity?
a. It is fairly constant in the short run, but varies considerably in the long run, complicating predictions about nominal GDP.
b. M1 velocity is more stable in the short run than M2 velocity, and it has been a superior tool in predicting changes in nominal GDP.
c. It is not constant in the short run, and predictions about nominal GDP have not fared well.
d. M2 velocity has been less stable than M1 velocity, but both are reliable enough to make accurate predictions about changes in nominal GDP.
c
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According to Figure 5.1, the real interest rate is relatively low in ________
A) Brazil B) Turkey C) Argentina D) Japan E) Indonesia
Women in the workplace seem to be narrowing the wage gap with males. What might be the cause of this shift during the past 25 years?
Which of the following was an unintended consequence of the subsidies and mandated expansion in output of gasoline produced from corn-based ethanol?
a. higher food and grain prices. b. a reduction in the demand for battery powered automobiles because of the low prices of gasoline produced from ethanol. c. sharply lower prices for feed grains because of a reduction in the demand for corn. d. a substantial reduction in crude oil prices because of the low-cost production of gasoline from ethanol.
A consumer buys only food and clothing. If the quantity of food bought increases while that of clothing remains the same, the marginal utility of food will:
A. fall, but not as fast as the marginal utility of clothing falls. B. rise, but not as fast as the marginal utility of clothing rises. C. rise relative to the marginal utility of clothing. D. fall relative to the marginal utility of clothing.