Empirical research has shown that:
A. during the 1980s and 1990s, the velocity of money actually decreased as the opportunity cost of holding money increased.
B. in the 1990s and 2000s, velocity was less sensitive to an increase in the opportunity cost of holding money than in the 1980s.
C. in the 1990s and 2000s, velocity was more sensitive to an increase in the opportunity cost of holding money than in the 1980s.
D. during the 1980s and 1990s, the velocity of money was not sensitive to changes in the opportunity cost of holding money.
Answer: C
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In the economic way of thinking, government consists of many different people interacting on the basis of
A) fear. B) legal guarantees. C) prevailing property rights. D) public interests.
The Phillips curve is a negative empirical relationship between
A) bond prices and interest rates. B) unemployment and output. C) inflation and the real interest rate. D) unemployment and inflation.
Which of the following is a TRUE statement about stock markets?
A) Economists can make above-average profits in the stock market because of their specialized knowledge of economics. B) It is always better to buy growth stocks than the older and more stable blue-chip stocks. C) The stock market on average over time is random and totally unrelated to the performance of the economy. D) It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.
Dumping is the practice of
a. selling a lower quality product abroad b. selling a commodity abroad at a price lower than the domestic price c. selling a commodity abroad at a price higher than the domestic price d. flooding a foreign market with large quantities of a good e. most less-developed countries but not industrialized countries