The speed with which money circulates through the economy is called the
a. oversimplified multiplier.
b. velocity of circulation.
c. exchange rate.
d. money multiplier.
b
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In spring 2008, the U.S. Congress proposed to tax oil companies because of their near-monopoly status. This could have the unintended consequence of
A) increasing the equilibrium price by more than the tax. B) destroying the oil companies and leaving the United States without oil. C) increasing the profit of the best oil company. D) decreasing the power of the U.S. Congress.
If Marie buys a sailboat, which increases the productivity of her leisure time, she
a. increases her productivity of nonmarket work b. increases her productivity of market work c. will spend less time in nonmarket work d. will spend less time in leisure activities e. will spend more time in market work to pay for the boat's maintenance
A professionally managed portfolio of assets intended to provide income to retirees is called:
A. a mutual fund. B. a stock. C. a derivative. D. investing by proxy.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's overall balance and value of the Bolivar (the Venezuelan currency)?
a. Overall balance would rise and value of the Bolivar would fall. b. Overall balance would not change and value of the Bolivar would fall. c. Overall balance would fall and value of the Bolivar would not change. d. Overall balance would fall and value of the Bolivar would fall. e. Overall balance would fall and value of the Bolivar would rise.