Which of the following will tend to increase velocity?
a. a decrease in the number of payments
b. a decrease in inflation
c. an increase in interest rates
d. an increase in the money supply
e. All of the above.
c
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Discrimination that occurs when people's preferences cause them to discriminate against a certain group is referred to as:
A) group discrimination. B) special interest group discrimination. C) cultural discrimination. D) taste-based discrimination.
In his book The Wealth of Nations, Adam Smith employed the example of a pin factory in order to explain what economic concept?
A) why no firm would want to hire so many workers as to experience a negative marginal product of labor B) the relationship between the marginal and average product of labor C) the law of diminishing returns D) the division of labor
When the MPC gets smaller, the spending multiplier:
a. gets larger. b. gets smaller. c. stays the same. d. gets smaller at low real GDP, and larger at high real GDP. e. gets larger at low real GDP, and smaller at high real GDP.
Think of resources: The aggregate supply curve will shift to the right when the
a. quantity of labor in the society decreases b. capital stock in the economy shrinks c. quantity of natural resources in the society gets smaller d. quantity of labor in the economy increases e. price level in the economy rises