In the monetary equation of exchange, MV = PQ, P stands for
a. total price.
b. average price.
c. purchases.
d. the Producer Price Index.
b. average price.
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All of the following are characteristics of the pure coordination game except
A) Nash equilibria exist at every outcome where players successfully coordinate. B) each player has a dominant strategy. C) the payoff for coordinating is higher than the payoff for not coordinating. D) the two general outcomes are that the players either coordinate with each other or they do not.
The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase. B) The demand for ferry service would decrease. C) There would be an upward movement along the demand curve for transits through the Chunnel. D) There would be a downward movement along the demand curve for transits through the Chunnel.
Compared to the national debts of major European countries as a percentage of national incomes, the U.S. national debt
a. is the largest. b. is the smallest. c. is at the lower end. d. falls in the highest ten percent.
Adjusting monetary growth based on previous changes in nominal GDP
A) is relatively easy for the Fed to undertake because the implementation lag is quitelong. B) could be destabilizing because of the uncertainty of the length of impact lags. C) is an effective policy because it allows the Fed to influence future macroeconomic performance. D) raises the price level proportionately.