If nominal GDP is 8,100 billion florins and the money supply is 900 billion florins, the velocity of circulation is
a. 900.0.
b. 90.0.
c. 81.0.
d. 9.0.
e. 8.1.
d
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If Wes in Wisconsin buys $200 worth of stock in Toshiba, and the Japanese use the $200 to buy a wheel of cheese from Wes, then the U.S. net exports:
A. and net capital outflow are both zero. B. and net capital outflow both equal $200. C. is zero and net capital outflow is $200. D. equals $200 and net capital outflow is zero.
If a central bank decreases the money supply in response to an adverse supply shock, then which of the following quantities moves closer to its pre-shock value as a result?
a. both the price level and output b. the price level but not output c. output but not the price level d. neither output nor the price level
Explain why current consumption is likely to respond less than one for one to changes in current income
What will be an ideal response?
If you believe that a worker should be paid on the basis of what he or she produced, you believe in
A) the egalitarian principle. B) the productivity standard. C) the benefits standard. D) the comparative worth principle.