Which one of the following will cause velocity to increase?
A. Decreasing the interest rates
B. Increasing the efficiency of the payments system
C. Switching from weekly to monthly payroll checks
D. Increasing the money supply
Answer: B
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According to the classical economists, an economy producing $15 trillion in goods and services
A) may be producing too much since the needs of people may not be this great. B) could experience a permanent glut if no one has estimated the demand for goods and services in the economy. C) simultaneously generates the income necessary to purchase $15 trillion in goods and services. D) is supplying $15 trillion in goods and services, but could be demanding more or less than $15 trillion in goods and services for a very long period of time.
When Americans decrease their demand for Japanese goods
A) the supply of dollars will fall, and the demand for yen will fall. B) the supply of dollars will rise, and the demand for yen will rise. C) the demand for dollars will rise, and the demand for yen will rise. D) the demand for dollars will fall, and the demand for yen will rise.
With the invention of ATM machines, the public now holds less currency. As a result, we would expect to have seen
a. both the M1 and the M2 multipliers to increase over time. b. the M1 multiplier to increase while the M2 multiplier to decrease over time. c. the M1 multiplier to decrease while the M2 multiplier to increase over time. d. None of the above
One way to market a proposal for a new business venture, especially when architectural changes are ruled out and the opposition seems strong is to:
A. pretend that architectural changes will be made. B. withdraw the proposal. C. emphasize the level of crisis that exists inside the firm. D. replace the Board of Directors.