Velocity is
a. Y/(M x P) and increases if dollars are exchanged less frequently.
b. Y/(M x P) and increases if dollars are exchanged more frequently.
c. (P x Y)/M and increases if dollars are exchanged less frequently.
d. (P x Y)/M and increases if dollars are exchanged more frequently.
d
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An exchange rate that is set by official government policy is called a ________ exchange rate.
A. nominal B. fixed C. real D. flexible
The percentage rate of change in the price level is called the
A) Consumer Price Index. B) rate of inflation. C) chain-weighted price index. D) rate of absorption.
If realized capital gains are counted as household savings, then the saving rate in the US over the past 2 decades has
a) fallen sharply from 10% to nearly zero b) hovered near zero and occasionally been negative c) remained roughly steady at 10% d) increased sharply e) varied dramatically as the stock market has fluctuated
According to classical economists, if there is a 12% increase in the money supply, what will happen to the price level?
a) The price level will increase by 6%. b) The price level will decrease by 6%. c) The price level will increase by 12%. d) The price level will decrease by 12%.