There is evidence that the rate at which money changed hands rose during the German hyperinflation. This means that
a. velocity rose. If monetary neutrality holds the rise in velocity increased the ratio M/P.
b. velocity rose. If monetary neutrality holds the rise in velocity decreased the ratio M/P.
c. velocity fell. If monetary neutrality holds the fall in velocity increased the ratio M/P.
d. velocity fell. If monetary neutrality holds the fall in velocity decreased the ratio M/P.
b
You might also like to view...
In which scenario can a perfectly competitive firm continue to produce in the short term, even though it would mean economic losses (where P = price, AVC = average variable costs, and ATC = average total cost)?
a. P < AVC but P > ATC b. P = AVC + ATC c. P > ATC – AVC d. P > AVC but P < ATC
In the context of Ireland's Balance of Payments, what does the term "patent cliff" refer to?
(a) The large number of FDI companies in Ireland. (b) A drop in exports attributed to the pharmaceutical sector. (c) Plummeting unemployment levels. (d) A depreciating currency.
Answer the next question on the basis of the following five schedules, all of which represent income tax schedules for an economy. All figures are in billions of dollars.IIIIIIIVVTaxBase (Income)TaxBase (Income)TaxBase (Income)TaxBase (Income)TaxBase (Income)$30$100$10$100$5$100$30$100$10$10050200202001520060200302006030030300303009030060300704004040050400120400100400Which of the above schedules represent(s) a regressive tax?
A. V only B. III and V C. I only D. IV only
Which of the following institutions within the Federal Reserve System determines how many government securities the Fed should buy or sell on a given day?
A. the Federal Reserve Bank of Chicago's Board of Trade B. the Federal Reserve Bank of New York's Trading Desk C. Federal Advisory Committee D. the Board of Governors