The velocity of money is the:
A. rate at which the price index for consumer goods rises.
B. multiple by which an increase in government expenditures will cause output to expand.
C. average number of times a dollar is used to buy goods and services included in GDP.
D. number of times a dollar is taken out of the country during a year.
Answer: C
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Antitrust policies are a set of measures which are taken to liberate the economy from unnecessary governmental controls
a. True b. False Indicate whether the statement is true or false
Assume the government decides to decrease taxes and to finance the expected budget deficit with borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with demand for real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the left. d. Start the analysis in the real goods market with aggregate supply shifting to the right. e. Start the analysis in the real credit market with demand for real credit shifting to the left.
Following World War I and World War II, the United States had a
A. small trade deficit. B. large trade deficit. C. small trade surplus. D. large trade surplus.
Entrepreneurs tend to have a comparative advantage in
A) arbitrage. B) manipulating market prices. C) stealing other people's ideas. D) selling their products below cost. E) hiring others to act as residual claimants.