The V in the equation of exchange represents the:
a. variation in the GDP.
b. variation in the CPI.
c. variation in real GDP.
d. average number of times per year a dollar is spent on final goods and services.
d
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An increase in price results in increase in supply but not an increase in the quantity supplied
Indicate whether the statement is true or false
For main industrial countries such as Japan and the U.S
A) there is much less month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run. B) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run. C) there is almost the same month-to-month variability of the exchange rate and price levels. D) it is hard to tell whether month-to-month variability of the exchange rate is similar to changes in price levels. E) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the long run.
When domestic prices rise,
A. people buy fewer imported goods. B. exports rise. C. exports fall. D. business investment rises because interest rates fall.
In the absence of technological progress, we know with certainty that an increase in the saving rate will cause which of the following?
A) increase steady state consumption B) decrease steady state consumption C) have no effect on steady state consumption D) increase steady state consumption only if the increase in saving exceeds the increase in depreciation E) increase steady state consumption only if the increase in saving is less than the increase in depreciation