Nominal GDP is proportional to money stock when
A. velocity of money is volatile.
B. velocity of money is constant.
C. there are major changes in the value of velocity of money.
D. velocity of money is zero.
Answer: B
You might also like to view...
Classical macroeconomic theorists argued that when households reduce consumption and deposit money into savings accounts, aggregate spending will:
A. increase because households will have more wealth. B. fall because banks typically make it difficult for businesses to borrow money. C. fall because consumers are saving instead of spending. D. not fall because banks will lend that money out to businesses.
According to the bank reserve equation, the largest factor supplying reserves to the banking system is
A) Federal Reserve purchases of government securities. B) Treasury currency outstanding. C) float. D) currency in circulation.
Edgar only consumes protein shakes with his income, I. The price of shakes is p
a. What is Edgar's demand equation for shakes? b. Can protein shakes be an inferior good for Edgar? Explain. c. What is the price elasticity of Edgar's demand for shakes? Derive using calculus. d. What is the income elasticity of Edgar's demand for shakes?
States that developed successful and sound commercial banking systems in the antebellum period included all of the following except:
a. New York. b. Ohio. c. Michigan. d. Louisiana.