The "velocity of circulation" refers to the
A) average speed with which the Fed increases or decreases the quantity of money.
B) ratio between the quantity of money and the price level.
C) average number of times in a year each dollar is used to buy goods and services.
D) average number of times a dollar is deposited and withdrawn from a bank account.
E) average speed with which the nominal interest rate changes when the inflation rate changes.
C
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Your text mentions several ways that international trade flows are qualitatively different than they were a century ago. Which of the following is NOT one of those ways?
A) Manufactured goods are more important than the were in the past. B) Firms' investment spending on capital goods is more important than in the past. C) International trade in raw commodities and agricultural products is more important than it was in the past. D) It is possible to trade some types of services in a way that was not possible in the past. E) Multinational corporations play a bigger role in production than they did in the past.
Which of the following does not hinder successful price leadership?
a. all of the following are correct b. potentially large economic profits due to this activity c. cheating by offering secret discounts d. product differentiation e. illegality of coordinated pricing
In the U.S. a box of tea costs $5 . The same box of tea in Uganda costs 10,000 schillings (the currency of Uganda). If the real exchange rate is 5/4, what is the nominal exchange rate? Show your work
A country reduces its government budget deficit and also makes political reforms that lead people to believe this country's assets are less risky. Given the combination of a reduced deficit and lower asset risk, what happens to the interest rate?