If an economy has a money supply of $200, a velocity of 12, and a price level of $2, the output level must be:
A. 1,200 units.
B. 2,400 units.
C. 600 units.
D. 6,000 units.
A. 1,200 units.
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A change in input prices has no impact on the budget line
a. True b. False Indicate whether the statement is true or false
The federal funds rate and the quantity demanded of reserves have a(n) ____________ relationship. This is because as the federal funds rate moves down, it becomes _______________ for banks to hold reserves, encouraging banks to hold ____________ in reserves to guard against checkable deposit withdrawals
A) inverse; more expensive; more B) direct; more expensive; less C) inverse; cheaper; more D) direct; cheaper; more
On the Heritage Foundation's scale of "Economic Freedom," which of the following factors contribute to "Economic Freedom"?
A. high tariffs to protect domestic jobs B. a vibrant labor union movement C. a guaranteed minimum wage D. a legal system conducive to business
Suppose a country's net exports equal -$2.1 billion. Which of the following will happen if the volume of exports increases by $3 billion without any change in the volume of imports?
A) The country's net exports will stand at -$5.1 billion. B) The country's net exports will stand at zero. C) The country's net exports will stand at -$0.9 billion. D) The country's net exports will become positive.