Statistical analysis reveals that the long-run money velocity (for euro-area M3, which is equivalent to U.S. M2):
A. is much more stable in the U.S. than in the euro area.
B. is unstable in the euro similar to the instability that exists in the U.S.
C. has increased in the euro area since 1980.
D. is more stable in the euro area than in the U.S.
Answer: D
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A creator of an action movie who wants to protect their intellectual property would apply for which of the following?
A) a trade secret B) a copyright C) a patent D) a trademark
Many economists argue that the Fed contributed to the housing bubble by:
A. passing laws that allowed financial institutions to create credit default swaps. B. buying mortgage-backed securities for foreclosed homes. C. keeping the Fed funds rate lower than what the Taylor rule predicts. D. paying interest on bank reserves.
PriceQuantity Demanded$01,000$1400$2200$3100$425 Refer to the table, which shows the number of MP3 downloads demanded per month for the students at a certain university. What would happen to the quantity of MP3s demanded at a price of $2 if the university's enrollment were to increase significantly?
A. The quantity demanded would increase above 200 because the market demand schedule is the sum of individual demand schedules, and more students means more individual demand schedules for MP3s. B. The quantity demanded would rise to exactly 400 because every number in the table would simply shift down one row. C. The quantity demanded would remain at 200 because the number of buyers in a market does not impact the market demand schedule. D. The quantity demanded would fall below 200 because there would be more students competing for MP3s.
Does expansionary fiscal policy directly increase the money supply? Isn't it true that the president and Congress fight recessions by spending more money?
What will be an ideal response?