Suppose the quantity of money is $1,000, the velocity of circulation is 6, and real GDP is $4,000. Then the price level is
A) 2.0.
B) 2.5.
C) 1.1.
D) 1.5.
E) 6.0.
D) 1.5.
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The demand for the Franconian franc in the foreign exchange market equals 11,000 - 25,000e and the supply of francs in the foreign exchange market equals 9,000 + 25,000 e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 0.15 U.S. dollars per franc, then the franc is ________ and Franconia has a balance-of-payments ________.
A. overvalued; deficit of 5,500 francs B. overvalued; surplus of 5,500 francs C. undervalued; surplus of 5,500 dollars D. undervalued; deficit of 5,500 francs
How many people are unemployed if the employment ratio is 75%, there are 90 million people employed, and there are 20 million people not in the labor force?
A) 20 million B) 10 million C) 5 million D) 0 million
The first difference of the logarithm of Yt equals
A) the first difference of Y. B) the difference between the lead and the lag of Y. C) the approximately the growth rate of Y when the growth rate is small. D) the growth rate of Y exactly.
Which of the following transactions would be recorded as a credit in the U.S. current account?
a. A Japanese bank's purchase of IBM stock. b. A Japanese consumer's purchase of an Apple computer. c. An American tourist's payment to a Japanese hotel. d. An American consumer's purchase of a Toshiba VCR.