Suppose the growth rate of the money supply is 5% per year and the velocity of money is constant. In this case:
A. the difference between inflation and the real growth rate must be 5%.
B. inflation and the real growth rate must both be 5%.
C. the sum of inflation and the real growth rate must be 5%.
D. neither the inflation rate nor the real growth rate can exceed 5%.
Ans: C. the sum of inflation and the real growth rate must be 5%.
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Increasing worker productivity by creating economic incentives is an example of
a. laissez faire. b. supply-side economics. c. pump priming. d. Say’s Law.
If, regardless of price, the quantity demanded is a constant amount, then the demand curve is:
A. horizontal. B. vertical. C. upward sloping. D. downward sloping.
If demand increases while supply simultaneously decreases, then the equilibrium quantity
A) always increases. B) always decreases. C) can never change. D) none of the above
If the first copy cost of a music video is $223,000 and the marginal cost is $0, then how many copies should the firm sell in order to break even if the price was $10 each?
A. zero B. 2,230 C. 22,300 D. 223,000