The velocity of money is
a. the rate at which the price index for consumer goods rises.
b. the multiple by which an increase in government expenditures will cause output to rise.
c. set by the Board of Governors of the Federal Reserve System.
d. the average number of times one dollar is used to buy final goods and services during a year.
D
You might also like to view...
A member of a corporate board of directors that is also a manager of the business is known as
A) a shareholder. B) an inside director. C) a corporate governor. D) a partner.
An unexpected fall in Capacity Utilization should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
According to a survey by the U.S. Bureau of Labor Statistics, which of the following statements about annual U.S. household consumer expenditures is false?
A) The income elasticity of demand for entertainment is positive. B) The income elasticity of demand for owner-occupied housing is positive. C) The income elasticity of demand for rental housing is positive. D) The income elasticity of demand for health care is positive. E) Average family expenditures increase with income.
Exhibit 2-11 Production possibilities curves
In Exhibit 2-11, which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?
A. A major natural disaster B. An increase in consumption goods production this year C. An advance in technology D. An increase in unemployment