If nominal GDP is $200 billion and the stock of money is $40 billion, the velocity is 5.
Answer the following statement true (T) or false (F)
True
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In adopting mixed Nash equilibrium strategy, a player is attempting to
a. randomize his or her own behavior b. make the opponent favor a course of action preferred by the first player c. randomize the outcome of actions d. make the opponent indifferent between one action and another e. none of the above
The demand for good X has been estimated to be ln Qxd = 100 ? 2.5 ln PX + 4 ln PY + ln M. The advertising elasticity of good X is:
A. 0.0. B. 1.0. C. ?2.5. D. 4.0.
The antitrust laws aim to
a. discourage firms from moving production facilities overseas. b. encourage mergers to take advantage of economies of scale. c. facilitate cooperation among firms in oligopolistic industries. d. prevent firms from acting in ways that reduce competition.
The XYZ Co sells shirts. Shirts with the company label on the tag are perceived to be of higher quality than shirts with the store's label. Yet, shirts are of identical quality regardless of label. The demand for perceived high-quality shirts is ph = 50 - qh. The demand for perceived low-quality shirts is pl = 10 + ph - ql. The firm can produce shirts at TC = qh + ql. How many shirts does the
firm label as low quality and how many as high quality? What prices are charged? What will be an ideal response?