If income is $30 billion, the price level is 3, and the stock of money is $18 billion, what is the velocity of money?
A. 1.4
B. 1.8
C. 5
D. 180
Answer: C
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Refer to the table above. Assuming that the market consists of only these three sellers, what is the market supply when the price is $2?
A) 39 units B) 52 units C) 89 units D) 41 units
If the exchange rate has been $1.50 per British pound but now falls to $1.25 per British pound, there will be
a. more U.S. imports from Great Britain because the price of pounds has fallen b. more exports to Great Britain because the price of pounds has risen c. fewer exports to Great Britain because the price of the pound has risen d. more U.S. exports to Great Britain since the price of the dollar has fallen e. no change in either exports or imports
The MU/P equalization principle means consumers will exhaust their expenditure budget so that, in the end, the MU/P ratio is:
a. zero for each good. b. higher for goods the consumer wants the most. c. maximized for the goods the consumer wants the most. d. higher than TU/P. e. the same for each good.
A relationship between two variables in which one variable increases at the same time that the other increases is called
A. inverse. B. constant. C. direct. D. nonlinear.