According to the quantity theory of money, a 15 percent increase in the quantity of money creates a 15 percent rise in
A) the price level.
B) the velocity of circulation.
C) real GDP.
D) the unemployment rate.
A
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In the 1960s, banks started __________ in order to maneuver around the Glass-Steagall act
A) opening foreign branches B) using Section 20 affiliates C) forming one-bank holding companies D) dropping Federal Reserve membership
Refer to Scenario 15.2. If the interest rate were 2%, Furry Software should
A) retool the offices. B) rewire the network. C) move to Southern California. D) be indifferent between retooling and rewiring. E) be indifferent between rewiring and moving.
Bill consumes two goods: iced tea and spaghetti. The price of iced tea is $2 per bottle, and the price of spaghetti is $8 per serving. His income is $1,000 per month. He spends all of his income each month. He purchases 200 bottles of iced tea. How many servings of spaghetti does he purchase?
a. 125 b. 75 c. 50 d. 10
Suppose a subsidy is offered to consumers of education as a means of internalizing the externalities associated with education. If the subsidy accurately reflects the external benefits of education, then the new demand curve for education coincides with which other curve?