If an economy produces 1,000 units of output with a price level of $1 and the money supply (M) is $500, velocity is:
A. 2.
B. 500.
C. 50.
D. 5.
A. 2.
You might also like to view...
The shortage of precious metals or coins provided colonists with incentives to find alternatives. These alternatives included everything listed below except
(a) Teeth (b) Country money (c) Fiat money (d) Bills of credit
The closer monopolistic competition gets to perfect competition
a. the more vertical the AR curve. b. the more horizontal the AR curve. c. the greater the difference between AR and MR. d. the greater the profit.
Suppose you received a 3 percent increase in your nominal wage. Over the year, inflation ran about 6 percent. Which of the following is true?
a. Your real wage fell. b. Your nominal wage fell. c. Both your nominal and real wages decreased. d. Although your nominal wage fell, your real wage increased. e. Both nominal and real wages increased.
Which of the following generalizations is false? Other things equal:
A. interest rates are higher if lenders are imperfectly, rather than purely, competitive. B. the interest rate is less on small loans than on larger loans. C. long-term loans normally command higher interest rates than short-term loans. D. the greater the risk on a loan, the greater the interest rate.