The quantity theory of money assumes that the velocity of money:
a. will rise if the money supply rises, but it will not change if the money supply falls.
b. will fall if the money supply rises, and it will rise if the money supply falls.
c. is constant.
d. will rise if the money supply rises and fall if the money supply falls.
c
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Aggregate supply grows over time because of growing consumer and government spending
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Table 31.2 below to answer the question(s) that follow.Table 31.2PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 50 60 2153 50 70 2254 50 80 230Refer to Table 31.2. From Period 3 to Period 4, the marginal return to capital is equal to
A. 0.5. B. 2.0. C. 2.88. D. 3.21.
Refer to the information provided in Figure 3.15 below to answer the question(s) that follow.
Figure 3.15Refer to Figure 3.15. The current quantity of bags of pretzels supplied is 100. You accurately predict that in this market
A. price, quantity demanded, and quantity supplied decrease. B. price and quantity demanded increase and quantity supplied decreases. C. price tends to remain constant and quantity supplied increases. D. price and quantity supplied decrease and quantity demanded increases.
If interest rates in the United States rise,
A) the value of the dollar will rise as the foreign investors increase their holdings of U.S. investments. B) the value of the dollar will fall as foreign investors increase their holdings of U.S. investments. C) the value of the dollar will rise as foreign investors sell their U.S. investments. D) the value of the dollar will fall as foreign investors sell their U.S. investments.