If velocity is growing by 2 percent per year and real output is growing 6 percent per year, according to the equation of exchange, in order to maintain stable prices, the money supply would have to:
a. grow by 3 percent
b. grow by 4 percent.
c. grow by 8 percent.
d. grow by 12 percent.
b
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U.S. currency ________
A) is less efficient than barter B) includes tobacco C) is the sum of M1 and M2 D) is composed of the bills and coins held by individual and businesses
Refer to Figure 19-5. Suppose the pegged exchange rate is $0.11/yuan. Because of safety concerns and numerous product recalls, U.S. consumers lower their demand for Chinese products. Using the figure above, this would
A) decrease the shortage of Chinese yuan. B) decrease the surplus of Chinese yuan. C) increase the surplus of Chinese yuan. D) increase the shortage of Chinese yuan.
Human capital is associated with
a. a doctor charging lower-income patients less b. a doctor paying rent for the office c. a doctor's stethoscope d. a doctor's knowledge of political events e. a doctor's skills in the operating room
Which of the following statements is correct?
A. An increase in the price of C will decrease the demand for complementary product D. B. A decrease in income will decrease the demand for an inferior good. C. An increase in income will reduce the demand for a normal good. D. A decline in the price of X will increase the demand for substitute product Y.