According to the equation of exchange, economic logic would indicate that in order to avoid inflation, an increase in V must be accompanied by
A. an increase in spending by the government.
B. an increase in imports.
C. a decrease in the supply of money.
D. a decrease in unemployment.
C. a decrease in the supply of money.
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Give an example of a price ceiling. Draw a corresponding diagram and explain why there is a continuing shortage.
What will be an ideal response?
The marginal utility per dollar spent on a good represents the
a. satisfaction received for each dollar spent on the last unit consumed b. total satisfaction received from consuming a certain number of units of that good c. dollar value of average utility d. change in price due to a one-unit increase in total utility e. price paid for the last unit of utility
The Bali, Indonesia bombing by Al-Qaeda, which struck a U.S. target that was lightly defended, was an example of the "rational terrorist's"
A. marginalist technique. B. diversion technique. C. substitution effect. D. compression effect.
Under a fixed exchange rate regime, what will happen to the balance of payments for the United States and Mexico when the demand for Mexican goods rises? What is the only possible solution to this problem, given the fixed exchange rate?
What will be an ideal response?