If an individual earns $1,500 a month and spends it evenly throughout the month, transaction balances will average
A) $50 per month.
B) $750 per month.
C) $1500 per month.
D) $3000 per month.
B
You might also like to view...
The personal distribution of income measures which of the following?
A) the distribution of earnings by the factors of production B) proportion of income generated by the four types of expenditures on goods and services C) the distribution of income among households D) the distribution of income among nations E) how federal tax revenues are related to the type of businesses that employs the taxpayers
The market clearing price of a good is
A) the price at which there is at least some of the good available for everyone. B) the price at which there is no surplus and no shortage. C) the price that consumers prefer. D) the price that producers prefer.
What is the best description of the US economy from 1929-1940?
a. GNP decreased continually during the greatest Depression our nation has known. b. The economy suffered a large drop from 1929-1933, but then grew steadily through WW II. c. The economy suffered an initial drop, a four-year expansion and then another drop towards the end of the decade. d. The unemployment rate increased steadily throughout the period.
One advantage of the Herfindahl index over the concentration ratio is that it:
A. gives extra weight to firms that are especially large. B. is easier to calculate. C. tells about only the top 50 firms in an industry. D. takes into account only the leading firms in an industry.