The use of computers to speed up the banking system's processing of checks explains why monetarists believed that
a. output increases as the price level increases
b. the money supply affects output
c. the velocity of money has increased since the 1950s
d. the changes in money supply and changes in velocity are interdependent
e. fiscal policy can fine tune an economy
C
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Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
a. An increase in disposable income taxes. b. An increase in interest rates c. A decrease in permanent disposable income. d. An increase in wealth. e. An increase in savings.
If the Federal funds rate:
a. Increases, the prime interest rate will increase b. Decreases, the prime interest rate will not change c. Decreases, the prime interest rate will increase d. Increases, the prime interest rate will decrease
Economists Novy-Marx and Rauh contend that cities are
A. accurately stating the value of their assets but understating the value of their pension liabilities. B. accurately stating the value of their assets but overstating the value of their pension liabilities. C. accurately stating their pension liabilities. D. understating the value of both their assets and liabilities.
An elasticity of 1 would be considered
A. perfectly elastic. B. elastic. C. unit elastic. D. inelastic.