Which of the following will reduce the velocity of circulation of the money stock?
A. The inflation rate increases.
B. The interest rate falls.
C. Credit cards are used more frequently.
D. More employees are paid once a week instead of once a month.
Answer: B
You might also like to view...
Suppose Chip's Chips produces bags of potato chips. An example of a variable cost for this firm would be:
A. the potato peeling machine. B. the factory building. C. the deep fryer. D. None of these is an example of a variable cost.
The tax treatment of corporate profit means that corporations
a. cannot profitably issue common stock. b. choose investment opportunities more efficiently than do other types of firms. c. limits the things in which corporations can invest. d. can generally avoid paying federal taxes but not state taxes.
Which of the following will lower interest rates in the short run?
a. an increase in reserve requirements b. open market sales by the Fed c. a decrease in real GDP d. an increase in the price level
If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index rises, and the change in real GDP is uncertain. b. Price index falls, and real GDP rises. c. Price index is uncertain, and real GDP rises. d. Price index falls, and real GDP falls. e. Price index falls and the change in real GDP is uncertain.