If you earn and spend $300 per week and maintain an average cash balance of $100 per week, your velocity of money is
A) $100.
B) $200.
C) 3.
D) 2.
Ans: C) 3.
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The notion that a decline in tax rates and other incentives will spur individuals and firms to increase productivity is typically referred to as
A) demand-side economics. B) Ricardian equivalence. C) supply-side economics. D) Keynesian economics.
Which of the following statements best describes the outcome of a shift in the AS curve?
a. If AS shifts out to the left, a combination of lower inflation, higher output, and lower unemployment is possible. b. If AS shifts out to the right, a combination of lower inflation, higher output, and lower unemployment is possible. c. If AS shifts out to the right, a combination of lower inflation, lower output, and higher unemployment is possible. d. If AS shifts out to the left, a combination of lower inflation, lower output, and higher unemployment is possible.
Between recalls on mass-produced commercial dog food and a general understanding of the benefits of a healthier diet for pets, the demand for natural or organic dog food is experiencing a significant increase. Wanda’s treats are more expensive than the “mass-produced” treats found in most grocery and big-box stores but she prides herself on providing high-quality products and believes that her customers are willing to pay the extra money for quality.
How does Wanda’s strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treats?
Refer to Figure 19.3. At the exchange rate of 120 yen per dollar, the United States is experiencing a
A) balance of payments deficit. B) balance of payments surplus. C) capital account deficit. D) current account surplus.