The velocity of money is the ratio of
A. real GDP to the stock of money.
B. nominal GDP to the stock of money.
C. the overall price level to the stock of money.
D. nominal GDP to the overall price level.
Answer: B
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Why must the spot price equal the futures price on the settlement date?
What will be an ideal response?
Corporations have a separation and control problem because
A) owners and managers frequently have different incentives. B) most of the profits are reinvested. C) the shareholders control the firm. D) taxes are paid only by the board of directors.
Which of the following government programs provides recipients with unrestricted cash payments?
a. Temporary Assistance to Needy Families (TANF). b. Medicaid. c. The food stamp program (SNAP). d. Housing assistance programs.
If Ms. Anniston transfers $1,000 from her checking account to her money market account, then
A. M1 falls and M2 remains the same. B. M1 falls and M2 rises. C. both M1 and M2 rise. D. M1 remains the same and M2 rises.