To be successful in stabilizing AD, the application of a constant growth-rate rule for the money supply requires
A) a constant velocity of money.
B) a steady and predictable rate of growth of the velocity of money.
C) a steady and predictable rate of growth of the velocity of income.
D) Both B and C are correct.
B
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Ad valorem taxes are based on the number of units sold
a. True b. False
When examining the growth record of any nation
A) all that must be examined is increases in per capital real GDP. B) no consideration should be given to the change in the average amount of leisure time in the nation. C) increases in per capita real GDP must be considered along with how far the production possibilities curve has shifted. D) we must consider which income groups have benefited most from the growth.
An insecure monopoly can deter another firm from entering the market by setting its quantity equal to:
A. the zero profit quantity. B. the zero profit quantity - the minimum entry quantity. C. the minimum entry quantity. D. the zero profit quantity + the minimum entry quantity.
The equation representing the investment schedule for the economy is:
Answer the question on the basis of the following data for a private
closed economy. The letters Y, C, S, and I are used to represent real GDP, consumption, saving, and investment respectively.
A. I = .3Y.
B. I = 80 - .3Y.
C. I = 30 + .1Y.
D. I = I 0 = 30.