Explain the equation of exchange.
What will be an ideal response?
The fundamental monetarist equation is MV = PQ. In this equation M is the money supply and V is the velocity at which the average income dollar is spent in a year, MV represents the total amount spent by purchasers. P is the price level and Q is the physical volume of goods and services produced. PQ, therefore, is the value of nominal GDP.
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All of the following concerns have been raised about crowd funding EXCEPT:
A) possibility of fraud B) lack of liquidity C) information costs D) limits access to funds for business start ups
A payroll tax is a
a. fixed number of dollars that every firm must pay to the government for each worker that the firm hires. b. tax that each firm must pay to the government before the firm can hire workers and operate its business. c. tax on the wages that firms pay their workers. d. tax on all wages above the minimum wage.
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/500 B. 1/10 C. 1/250 D. 500
Dairy Queen opens a branch in Estonia. The sales of the restaurant enter the U.S. GDP and the Estonian GNP.
Answer the following statement true (T) or false (F)