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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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.
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?