If the money supply in an economy equals $1,000 and nominal GDP equals $3,000 . then according to the equation of exchange, velocity of money:
a. equals 1/3
b. equals 3.
c. equals 3 million.
d. cannot be determined since we do not know anything about prices.
e. cannot be determined since we do not know anything about real GDP.
b
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Which of the following events would most likely increase the price elasticity of demand for scalping tickets to Chicago Bears games?
a. new uniforms for the players b. a winning season c. a decrease in the number of seats available at the stadium d. a losing season e. an increase in the number of seats available at the stadium
Ceteris paribus, which of the following will cause the demand for peanut butter to decrease?
A. The factories that produce peanut butter close down for safety reasons. B. The workers who pick peanuts, the main ingredient in peanut butter, demand a higher wage. C. Many people learn that they are allergic to peanut butter. D. It is reported that peanut butter prevents heart attacks.
Describe how a firm that sells only one brand of bleach may be able to increase its profit if it re-labels some of its bleach
What will be an ideal response?
For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value, _____.
A. the hypothesis of no serial correlation is accepted B. the hypothesis of no serial correlation is rejected C. the test is inconclusive D. the hypothesis of heteroskedasticity is accepted