Monetarists accept the idea that velocity is not constant; nonetheless, they believe that it is highly:
A. variable.
B. unpredictable, ill-behaved, and independent of money supply.
C. unpredictable, well-behaved, and dependent of money supply.
D. predictable.
Answer: D
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According to the law of diminishing returns, an additional unit of
A) capital produces more output than an additional unit of labor. B) labor decreases output. C) labor produces more output than the previous unit. D) labor produces less output than the previous unit.
Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output
As a result the monopolist will increase the price of its product to cover its higher cost. Indicate whether the statement is true or false
In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $800 per month in tax revenue. We can conclude that the equilibrium
quantity of widgets has fallen by a. 40 per month. b. 50 per month. c. 75 per month. d. 100 per month.
Answer the following statements true (T) or false (F)
1) When a company declares bankruptcy, stockholders are the first to be paid when company assets are sold. 2) Payments to holders of corporate bonds are known as dividends. 3) Index funds are an example of passively managed funds. 4) Actively managed funds consistently outperform index funds.