Over a year, the money supply in a nation grew by 8 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent
A) 7
B) 9
C) 13
D) 3
A
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In the two-gap model, which of the following gaps, when binding, leads to foreign aid having the largest impact on GNP?
(a) Fiscal gap. (b) Savings gap. (c) Foreign exchange gap. (d) None of the above.
To ensure that decision makers have enough information to make god decisions
a. Move information to those making the decisions b. Move decision making to those with the information c. All of the above d. None of the above
If people expect prices to fall in the future,
A. their consumption function in the present will shift downward. B. their consumption function in the present will shift upward. C. they will decrease their current levels of consumption by moving down along their consumption functions. D. they will increase their current levels of consumption by moving up along their consumption functions.
Which of the following is an argument that the incidence of corporate taxation falls entirely on consumers?
A) Corporations pass their tax burdens on to consumers by charging higher prices equal to the amount of the tax. B) Corporations pass their tax burdens on to consumers because consumers ultimately work for the corporations. C) Corporations always evade taxes so that consumers ultimately bear the tax burdens as taxpayers. D) Most taxes on consumers are collected by corporations through sales taxes.