The velocity of money is:
A. how many times on average the typical dollar changes hands in an exchange during the year.
B. how many times the average dollar gets spent per year.
C. the number of transactions in which a typical dollar is used during a year.
D. All of these statements are true.
Answer: D
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As a result of the 2008-2009 financial crisis and the decrease in GDP in many European economies, we would expect
A) an increase in the demand for U.S. exports and a leftward shift in the demand curve for dollars. B) a decrease in the demand for U.S. exports and a leftward shift in the demand curve for dollars. C) a decrease in the demand for U.S. exports and a rightward shift in the demand curve for dollars. D) a decrease in the demand for U.S. imports and a movement up along the demand curve for dollars.
Anheuser-Busch purchased the Labatt brewery in Canada and has expanded its market and product offerings. This is an example of:
A. foreign direct investment. B. foreign portfolio investment. C. importing. D. exporting.
Suppose many college faculty members lose their jobs because universities begin to rely more heavily on computerized instruction. The dismissed teachers are appropriately called
A. fully employed. B. discouraged workers. C. structurally unemployed. D. cyclically unemployed.
The multiplier effect refers to the series of
A) autonomous increases in consumption spending that result from an initial increase in induced expenditures. B) induced increases in consumption spending that result from an initial increase in autonomous expenditures. C) autonomous increases in investment spending that result from an initial increase in induced expenditures. D) induced increases in investment spending that result from an initial increase in autonomous expenditures.