When sportspeople record the speed of a pitch in baseball, they refers to its velocity. It is measured in miles per hour. When economists record the speed of a dollar, they refer to the velocity of money. It measures the
a. number of times per year each dollar is used to transact an exchange
b. rapidity of the dollar price of a good or the rate of inflation
c. number of times the price level increases during a year
d. time it takes a bank to convert a check into dollars
e. number of times per year each good, valued in terms of dollars, is purchased during the year
A
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Under the Bretton Woods system of fixed exchange rates, the price of the U.S. dollar was fixed in terms of gold and the prices of all other currencies were fixed in terms of dollars.
Answer the following statement true (T) or false (F)
If your wealth is held as currency or in checking accounts, or other assets that you can convert to money on short notice, your assets are considered to be
A) abundant. B) interest bearing. C) liquid. D) fast moving.
If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs
a. These purchases are called capital investment. If you raise the funds to purchase them from others you are a saver. b. These purchases are called capital investment. If you raise the funds to purchase them from others you are a borrower. c. These purchases are called consumption. If you raise the funds to purchase them from others you are a saver. d. These purchases are called consumption. If you raise the funds to purchase them from others you are a borrower.
If Harold runs a grocery store and is making a normal rate of return, we can infer that he is also making an economic profit.
Answer the following statement true (T) or false (F)