Data show that in the U.S. since 1915, the velocity of M1 money
a. has been highly stable at approximately 24
b. has increased at about 3 percent per year
c. has been erratic, varying between about 2 and 6
d. increased steadily until the 1960s, then decreased sharply thereafter
e. has stayed fairly constant at approximately 4
C
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Refer to the figure above. What is the initial equilibrium price of the good?
A) $20 B) $40 C) $60 D) $80
If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true?
A) Public saving is $100 million. B) The budget deficit is $100 million. C) The budget deficit is $500 million. D) Public saving is $500 million.
Originally, the threshold income level used to determine official poverty statistics was based on
A) a per capita income of $3000 in 1955 prices. B) the lowest income of the second quartile of families in the country. C) an income three times greater than necessary to purchase a nutritionally adequate diet. D) figures developed by a committee in the American Economic Association.
As national income increases:
a) The average propensity to consume falls and gets nearer in value to the marginal propensity to consume b) The average propensity to consume increases and diverges in value from the marginal propensity to consume c) The average propensity to consume stays constant d) The average propensity to consume always approaches infinity