If the demand for money depends on the interest rate, velocity is
A. constant, and the quantity theory of money does hold.
B. constant, and the quantity theory of money does not hold.
C. not constant, and the quantity theory of money does not hold.
D. not constant, and the quantity theory of money does hold.
Answer: C
You might also like to view...
The total cost schedule shows the relationship between different amounts of inputs and the resulting level of output
Indicate whether the statement is true or false
Which of the following most accurately describes the aggregate supply curve?
a. It shows the price level associated with firms' unit costs and markups for any level of GDP. b. It is the sum of all individual firms' supply curves. c. It is determined by the federal government. d. It shows firms' unit costs for each level of GDP. e. It shows the equilibrium level of GDP corresponding to each price level.
Assume your company produces good X using only two inputs, capital (K) and labor (L). Also, assume L is measured on the vertical axis and K on the horizontal one. If the prices of inputs are PK=$30 and PL=15, and your company is behaving efficiently, what is the slope of the isoquant at the current input mix?
A. 1/2 B. -1/2 C. 2 D. -2
In 2011, about what percentage of U.S. households had annual before-tax incomes of less than $15,000?
A. About 6 percent B. About 13 percent C. About 25 percent D. About 33 percent