The basic equation of monetarism is:
A. MV = PQ.
B. S a + T + M = I g + G + X n .
C. V = M/PQ.
D. C a + I g + X n + G = GDP.
A. MV = PQ.
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Assume that taxes depend on income. The MPC is 0.9 and t is 0.3. The government spending multiplier is
A. 10. B. 2.7. C. 1.42. D. 1.17.
When the government develops policies to stabilize the economy
A) only expansionary fiscal policy is impacted by the multiplier effect. B) only contractionary fiscal policy is impacted by the multiplier effect. C) these policies are unaffected by the multiplier effect. D) it needs to consider the multiplier effect for all fiscal policies.
Economists argue that the move from barter to money increased trade and production. How is this possible?
The Environmental Protection Agency was created in
A. the 1930s. B. the 1990s. C. the 1980s. D. the 1960s.