Keynesian economists believe that
a. since both V and Q are constants, the equation of exchange becomes the quantity theory of money, which explains prices
b. the quantity theory of money is proof that money cannot influence how much we produce, but does influence the prices of the goods we produce
c. even though velocity isn't constant, it is predictable
d. if a change in M occurs, it may not only affect P, but also and at the same time affect Q
e. the velocity of money is unchanging, regardless of changes in M, P, or Q
D
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Taxing in labor markets creates more excess burden than taxing in commodity markets.
A. True B. False C. Uncertain
The Arrow impossibility theorem suggests
A) democracies are doomed to fail in the long run. B) dictatorships are impossible in the long run. C) there is no universally applicable decision rule in a majority-rule democracy. D) there is no way to make democracy better than a dictatorship.
China has developed a comparative advantage in the production of children's toys. The source of this comparative advantage is
A) superior process technology. B) a large supply of natural resources. C) a large supply of unskilled workers and relatively little capital. D) investment in capital used to produce toys.
Suppose you purchase a call option to buy IBM common stock at $35 per share in September. The current price of IBM is 37 and the option premium is 4
What is the intrinsic value of the option? As the expiration date on the option approaches, what will happen to the size of the option premium?