More recently, the velocity of money was:
A. lower during the housing boom and higher during the recession that followed.
B. higher during the housing boom and lower during the recession that followed.
C. consistently lower than the historical trend since the early 1990s.
D. consistently higher than the historical trend since the mid-1980s.
Answer: B
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Institutions that accept deposits from individuals and organizations, against which depositors can write checks on demand for their market transactions and that use these deposits to make loans are called:
A) depository institutions. B) financial market institutions. C) insurance companies. D) none of the above.
Cases involving unequal pay for equal work and unequal access to promotion are monitored by:
a. the Council of Economic Advisors. b. the Equal Employment Opportunity Commission. c. the Federal Trade Commission d. the Social Security Administration.
Prices in both the U.S. and India rise, but prices in India increase by a smaller percentage. According to purchasing-power parity the U.S. dollar
a. gains value both in terms of the domestic goods and services it can buy and in terms of the Indian currency it can buy. b. gains value in terms of the domestic goods and services it can buy, but loses value in terms of the Indian currency it can buy. c. loses value in terms of the domestic goods and services it can buy, but gains value in terms of the Indian currency it can buy. d. loses value both in terms of the domestic goods and services it can buy and in terms of the Indian currency it can buy.
What happens when the government prints too much money?
a. Service prices decline. b. Money loses its value. c. Currency supply falls. d. Faith in money rises.