Which of the following groups believes that the velocity of money is constant in the long run?
A. Supply-side economists.
B. Monetarists.
C. Keynesians.
D. New classical economists.
Answer: B
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The above table has data on the consumption function in the nation of Mojo
a. What is the amount of autonomous consumption expenditure? b. What is the marginal propensity to consume?
If a demand curve for a good were completely vertical, it would be considered:
a. perfectly elastic. b. perfectly inelastic. c. of unitary elasticity. d. relatively inelastic.
If the Fed wanted to shift to a restrictive monetary policy and reduce the money supply, it could
a. decrease the reserve requirements imposed on commercial banks. b. purchase U.S. government securities and other financial assets in the open market. c. decrease the interest rate on loans extended to banks and other financial institutions. d. increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.
If the monopoly illustrated in the figure above could engage in perfect price discrimination, then the lowest ticket price would be
A) $1.00. B) $2.00. C) $3.00. D) $3.50.