If the growth rate of velocity changes:
A. the growth rate of the money supply must change in the same direction.
B. the growth rate of the money supply must change in the other direction.
C. the growth rate of C, I, G, or NX must change.
D. the growth rates of C, I, G, and NX must all change.
Ans: C. the growth rate of C, I, G, or NX must change.
You might also like to view...
Refer to Figure 5-3. At the competitive market equilibrium, for the last unit produced
A) the size of the external cost is Pn - Po. B) the size of the external cost is Pm - Po. C) the size of the external benefit is Pn - Po. D) the size of the external benefit is Pm - Po.
Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010,
a. nominal GDP is $1800, real GDP is $2000, and the GDP deflator is 90. b. nominal GDP is $1800, real GDP is $2000, and the GDP deflator is 111.1. c. nominal GDP is $2000, real GDP is $1800, and the GDP deflator is 90. d. nominal GDP is $2000, real GDP is $1800, and the GDP deflator is 111.1.
Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. At the world price of ________ per barrel of oil, the United States imports 6 million barrels of oil per day.
A. $100 B. $125 C. $150 D. >$150
U.S. citizens and firms earn foreign exchange when they sell products to citizens and firms in other countries.
Answer the following statement true (T) or false (F)