over the long haul, rapid increases in the supply of money lead to
What will be an ideal response?
inflation
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. Nominal GDP in 2013 is equal to
A) $500. B) $800. C) $640. D) $625. E) $200.
Transfer payments are not part of government expenditure on goods and services because transfer payments
A) are not predictable given the nature of their appropriation and allocation. B) do not represent the purchase of a final good or service. C) are not always spent on goods produced in the U.S. D) The premise of the question is incorrect because transfer payments are part of government purchases of goods and services.
Which of the following is not a possible source of instability in velocity in the Monetarist model?
a. financial innovation. b. changes in monetary policy c. changes in interest rates d. credit cards.
Which of the following countries has the most unequal distribution of income?
a. The United States. b. Czech Republic. c. Brazil. d. cannot be determined.