A velocity of 1 means that money will not change hands during a particular year.
Answer the following statement true (T) or false (F)
False
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?Consider a market for cookies that is initially in equilibrium. For a given upward-sloping supply curve, the equilibrium price and equilibrium quantity of cookies is most likely to decline when:
A) the price of milk, a complement, increases. B) consumer income increases. C) the number of consumers increases. D) the price of coffee, a complement, decreases. E) price of crackers, a substitute, increases.
Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will:
A. cause firms to standardize their product to limit the degree of competition. B. make the industry allocatively efficient as each firm seeks to maintain its profits. C. attract other firms to enter the industry since the barriers to entry are low. D. reduce the excess capacity in the industry as firms expand production.
The entire group of buyers and sellers of a particular good or service makes up:
A. the supply curve. B. a market. C. the equilibrium price and quantity. D. the demand curve.
The best definition for economic growth is
A) a sustained expansion of production possibilities measured as the increase in real GDP over a given period. B) a sustained expansion of production possibilities measured as the increase in nominal GDP over a given period. C) a sustained expansion of consumption goods over a given period. D) a sustained expansion of production goods over a given period.