Empirical studies on velocity and money demand have limited usefulness for monetary policy because they often ignore
A) money supply effects.
B) interest rate effects.
C) inflation effects.
D) lags in monetary policy.
D
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The price of a gallon of gasoline was $0.35 in 1972 when the CPI equaled 0.418. The cost of a gallon of gasoline was $2.25 in 2005 when the CPI equaled 1.68. The real cost of a gallon of gasoline between 1972 and 2005:
A. may have either increased or decreased. B. remained constant. C. increased. D. decreased.
In the absence of government
A) public goods are likely to be overprovided. B) market failure is less likely to occur. C) public goods are likely to be underprovided. D) the free-rider problem is more likely to occur.
Not counting _____ as unemployed understates unemployment
a. children b. retired persons c. students d. people who do not want to work e. discouraged workers
The 45-degree line used in a consumption function represents:
a. the saving function. b. all points at which saving equals disposable income. c. all points at which consumption equals saving. d. all points at which all disposable income is consumed. e. the aggregate income of the economy.