If M stand for the money supply, V for the velocity of money, P for the average selling price, and Q for the output of goods and services, the equation of exchange is MV = PQ
a. True
b. False
Indicate whether the statement is true or false
True
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A game in which players want to coordinate on an outcome and in which both agree that coordinating on one particular outcome is preferred to coordinating on the other is called
A) an assurance game. B) a pure coordination game. C) a battle of the sexes game. D) a chicken game.
In the market for British pounds, if the current exchange rate is above the equilibrium rate,
a. there is an excess supply of pounds and those who hold pounds will be able to sell them and make a profit b. there is an excess supply of pounds and the exchange rate will fall c. there is an excess demand for pounds and suppliers will not be able to supply enough pounds to meet the demand d. there is an excess demand for pounds and the exchange rate will rise e. the quantity of pounds supplied is barely sufficient to meet the quantity demanded
In 2011 national defense was just as large a general expenditure as Social Security.
A. True B. False C. Uncertain
In developing economic theories, principles, or models, economists:
a. ignore important variables. b. remove clutter and simplify. c. include all possible factors. d. consider every possible outcome.