The velocity of money can best be described as
A) how quickly prices are increasing.
B) how quickly output is increasing.
C) the number of times each dollar in the money supply is used to buy goods and services included in GDP.
D) the growth rate of the money supply.
C
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An initial leftward shift in labor demand often creates a cascading chain of events, amplifying the impact of the initial shock. This is known as the ________ effect
A) Veblen B) multiplier C) cluster D) rebound
Refer to the scenario above. Which of the following is true if David's maximum willingness to pay for the good falls to $380?
A) James will win the auction. B) Rachel will not take part in the auction. C) The owner of the good will earn the same average revenue. D) David will win the auction.
Which of the following statements regarding historical costs is correct?
A) Historical costs represent what the firm paid for an input when it was purchased, adjusted for inflation. B) Historical costs vary depending on the method of depreciation a firm uses. C) Historical costs are a good indicator of the current opportunity cost of a piece of capital. D) Using historical costs can cause true economic profit to be under or over stated.
Which government agency regulates futures markets?
A) SEC B) Commodity Futures Trading Commission C) Board of Trade D) the Federal Futures Agency