If the money supply is $500 and nominal income is $4,000, the velocity of money is
A) 1/20.
B) 1/8.
C) 8.
D) 20.
C
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In perfect competition, the firm's marginal revenue curve
A) cuts its demand curve from below, going from left to right. B) cuts its demand curve from above, going from left to right. C) always lies below its demand curve. D) is the same as its demand curve.
How does economic growth influence the production possibilities frontier?
What will be an ideal response?
When the economy is hit by a negative demand shock and the central bank pursues policies to increase aggregate demand to its initial level, then
A) inflation will be lower. B) output will be at its potential. C) output will be lower. D) inflation will be unchanged. E) both B and D.
Ryan, a foreign-exchange dealer, sold U.S. dollars for Swiss francs in the United States, then sold Swiss francs for Japanese yen in Switzerland, and then sold the Japanese yen for U.S. dollars in the United States. Ryan hopes that he will end up with more U.S. dollars than when he began. Which term best describes Ryan's actions?
A) arbitrage B) speculation C) spot transaction D) outright forward