According to the equation of exchange, if V = 10, P = 3, and Y = $100, then the money supply equals
A. $10.
B. $15.
C. $30.
D. $150.
Answer: C
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In the IS-LM model, if interest rates fall while output falls the
a. money supply must have fallen. b. price level must have fallen. c. money supply must have risen. d. level of government spending must have risen. e. none of the above.
A perfectly competitive firm is currently producing an output level where price is $10.00, average variable cost is $6.00, average total cost is $10.00, and marginal cost is $8.00. In order to maximize profits, this firm should
A) increase the market price. B) shut down. C) decrease its output. D) increase its output. E) not change its output — this firm is at its profit-maximizing position.
If the exchange rate between the Argentine peso and the U.S. dollar is 4 pesos for $1, how much is each peso worth in U.S. dollars?
a) $0.25 b) $0.50 c) $0.75 d) $1.25
The unemployment rate is the fraction of the labor force without a job.
Answer the following statement true (T) or false (F)