The equation of exchange is
A. a theory developed at the Federal Reserve.
B. true in the short run but not always in the long run.
C. an assumption that is not always true.
D. an accounting identity and therefore is always true.
Answer: D
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An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
According to economic historians, one result of international trade is that it
A. reduces the world-wide output of goods. B. reduces the world-wide consumption of goods. C. causes persistent world-wide inflation. D. aids in the international transmission of ideas.
If the demand for opera singers increases faster than the supply, wages will rise
a. True b. False Indicate whether the statement is true or false
Exhibit 7-15 Long-run average cost
Given the short-run average total cost curves in Exhibit 7-15, what level of output per week minimizes average total cost?
A. 500 units. B. 1,000 units. C. 1,500 units. D. 2,000 units.