If the velocity of the M1 money supply is 4 and nominal GDP is $200 billion, the stock of money in circulation must be:
a. $25 billion.
b. $50 billion.
c. $100 billion.
d. $800 billion.
b
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Perfect competition is the term used to describe:
a. an industry in which a few price-taking firms produce identical products b. an industry in which numerous price-taking firms produce identical products. c. an industry in which firms are price takers and compete for market share by varying the qualitative characteristics of products. d. an industry in which numerous firms are price makers and produce identical products.
Exhibit 15-7 Foreign exchange market for U.S. dollars and British pounds
Exhibit 15-7 shows a situation in which:
A. both the dollar and the pound have depreciated. B. both the dollar and the pound have appreciated. C. the dollar has depreciated and the pound has appreciated. D. the dollar has appreciated and the pound has depreciated.
Which of the following statements is a positive economic statement?
A. The U.S. tax system always gives too much favor to rich people. B. The President's budget included an increase in unemployment insurance payments. C. The Congress should pass the president's tax package. D. None of these
Short-run total cost is defined as
A) the sum of marginal cost and total variable cost. B) price of labor per unit multiplied by the number of labor units. C) total fixed cost plus total variable cost. D) total capital cost only.