From the equation of exchange, if both nominal income and the quantity of money (M) have tripled, while the price level (P) has increased by 50 percent and velocity (V) remains constant, then real output (Y) ________
A) also triples
B) increases by 50 percent
C) doubles
D) decreases by 50 percent
E) none of the above
C
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The sum of public spending on goods and services and transfer payments during a given period cannot exceed tax revenues plus borrowed funds. This is the statement for
A) ad valorem taxation. B) an excise tax. C) a sales tax. D) the government budget constraint.
The airline dominating Charlotte, North Carolina, once contended that it could not overcharge for fear of potential competition, if not at Charlotte, then at Raleigh, a two-hour drive away. Do you find this argument compelling, given the theory of contestable markets?
A commitment strategy can:
A. be used to change people's payoffs to gain cooperation. B. result in a positive-positive outcome. C. allow players to reach a mutually beneficial equilibrium that would otherwise be difficult to maintain. D. All of these statements are true.
Consider the model: yt= 
0+ 1zt1+ 2zt2 + ut. Under weak dependence,
the condition sufficient for consistency of OLS is:
A. E(zt1|zt2) = 0.
B. E(yt |zt1, zt2) = 0.
C. E(ut |zt1, zt2) = 0.
D. E(ut |zt1, zt2) = 
.