Which of these is most likely to lower the velocity of money?
a. A commercial innovation that facilitates exchange
b. A low inflation rate
c. A decline in the effectiveness of money as a store of wealth
d. A high inflation rate
e. A weekly pay for workers instead of a monthly pay
b
You might also like to view...
In behavioral economics, the endowment effect refers to
A) most people believe that most wealthy people inherit their wealth. B) many people would be indifferent between being endowed with money or knowledge. C) many people place a higher value on what they own than when they consider purchasing. D) most people respond to tax incentives to provide an endowment for their children.
An example of a price that changes only infrequently is the price of
a. stocks on the New York Stock Exchange. b. crude oil. c. residential real estate. d. magazines sold at newsstands.
Assume the nation of Teeveeland does not trade with the rest of the world. By comparing the world price of televisions to the price of televisions in Teeveeland, we can determine whether
a. consumer surplus exceeds producer surplus in Teeveeland. b. Teeveeland has an absolute advantage in producing televisions. c. Teeveeland has a comparative advantage in producing televisions. d. All of the above are correct.
Some economists contend that government agencies are generally less efficient than private businesses due to the following reasons, except:
A. Government bureaucracies do not face the profit motive, which is a major incentive that guides private firms B. Government bureaucrats tend to deal with failing programs by putting more resources into the programs C. Incompetent workers gravitate towards government, while motivated workers gravitate towards the private sector D. Bureaucrats, along with the special-interest groups they serve often have enough political clout to keep their agencies going regardless of performance