If the money supply is $1,000 . the price level is 3, and real income (or output) is $5,000 . then the velocity of money is _____
a. 0.2
b. 0.6
c. 1.67
d. 5
e. 15
e
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The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called
A) inequitable financing. B) moral hazard. C) adverse selection. D) asymmetric information.
Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods
a. Country A has higher productivity and higher real GDP per person than country B. b. Country A has lower productivity and lower real GDP per person than country B. c. Country A has higher productivity, but lower real GDP per person than country B. d. Country B has lower productivity, but higher real GDP per person than country B.
Barter transactions
A. involve directly exchanging goods for other goods. B. can occur without the "double coincidence of wants." C. are less costly than transactions involving money. D. involve the use of money as a medium of exchange.
If the money multiplier is 4, what is the required reserve ratio (RRR)?
(A) 50 percent (B) 20 percent (C) 2 percent (D) 25 percent