If the equation of exchange is MV = PY the Y represents:
A. nominal GDP.
B. economic growth.
C. potential output.
D. real GDP.
Answer: D
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The formula, , is equal to the
A) expenditure multiplier. B) marginal propensity to export. C) marginal propensity to consume. D) marginal tax rate. E) total amount of autonomous expenditure.
Any business wanting to attract financial capital must expect to
A) earn a positive economic profit. B) keep implicit costs as close to zero as possible. C) pay a normal rate of return. D) pay a below normal rate of return in order to make a positive rate of return itself.
Privatization is the
a. process of turning private enterprises into public enterprises b. the same as nationalization c. process of turning public enterprises into private enterprises d. process of turning state-owned enterprises into public enterprises e. process of turning sole proprietor enterprises into corporate enterprises
Economics: a. is a narrowly focused discipline
b. is a broad-ranging, problem-solving discipline. c. concerns itself only with monetary decisions. d. says very little about "everyday life."