The velocity of money
A. indicates the speed with which the U.S. Treasury can mint new coins.
B. is, according to the equation of exchange, equal to M/Y.
C. indicates the number of times per year a dollar is spent on final goods and services.
D. is, according to the equation of exchange, equal to P/M.
Answer: C
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Taxes and transfers in the United States
A) shift the Lorenz curve inward. B) shift the Lorenz curve outward. C) cancel out so that the Lorenz curve does not shift. D) shift the Lorenz curve inward at low incomes, outward at high incomes.
Refer to Scenario 15.2. If the interest rate were 2%, Furry Software should
A) retool the offices. B) rewire the network. C) move to Southern California. D) be indifferent between retooling and rewiring. E) be indifferent between rewiring and moving.
If a firm in a perfectly competitive market sells 100 units of output and total revenues are $500, which of the following statements are true? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
Which of the following is not included in the current account?
a. Imports of goods b. Exports of goods c. Unilateral transfers d. U.S. capital inflow and outflow