What is the equation of exchange?
What will be an ideal response?
The equation of exchange is the formula that MV = PY, where M is the quantity of money, V is the velocity of circulation, P is the price level, and Y is real GDP. The equation of exchange is always true by definition because the velocity of circulation is defined as PY/M.
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The slope of an indifference curve at all points reflects
A. the terms by which the consumer can trade off goods in the market. B. the relative prices of the two goods. C. the willingness of the consumer to trade one good for another. D. consumer income relative to the price of a good. E. the relative price ratio of the two goods.
Which of the following is classified as an asset for a commercial bank customer?
A) A car loan B) A commercial loan C) Demand deposits D) Deposits with the Federal Reserve
Assume that Ava is a single parent who is in poverty. She receives food stamps and Medicaid. For every $100 that she earns, Ava loses $20 of her food stamp benefits and $15 in her Medicaid benefits. Ava's implicit marginal tax rate from these two programs is
a. 20 percent. b. 30 percent. c. 35 percent. d. 45 percent.
In which year were real average hourly wages the highest?
A. 1973 B. 1983 C. 1993 D. 2007