The velocity of money is
a. money supply divided by prices.
b. spending divided by output.
c. required monetary reserves divided by income.
d. GDP divided by the money supply.
D
You might also like to view...
In game theory, a Nash equilibrium is the equilibrium that always yields the best result
Indicate whether the statement is true or false
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:
a. Price level. b. Real GDP. c. Nominal and real exchange rates. d. Real risk-free interest rate. e. Money supply.
The demand for money that households keep for emergency purposes is known as the:
a. emergency demand. b. temporary demand. c. precautionary demand. d. speculative demand.
The marginal product of capital is the increase in
A. capital needed to produce one more unit of output. B. labor needed to accompany a one-unit increase in capital. C. output from a one-unit increase in capital. D. output from a one-dollar increase in capital.