The simple quantity theory of money assumes that
A) velocity and Real GDP are constant.
B) only velocity is constant.
C) only the money supply is constant.
D) only the price level is constant.
A
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Deviations from purchasing power parity will be increasingly higher as international trade tariffs become more restrictive. This is mainly because:
a. arbitrage activities become less profitable. b. governments discourage purchasing power parity. c. the interest rate parity fails to hold. d. goods become more differentiated across countries. e. individuals develop hatred toward closed economies.
If marginal revenue is $10 and marginal costs is $8, the firm should increase its output.
Answer the following statement true (T) or false (F)
Social Security is financed:
A. by state income tax revenues. B. by payroll taxes on employees and employers. C. by federal excise taxes. D. out of general tax revenues.
The more we pay for a euro, the __________ European goods are to us and the __________ European assets are to us
A) cheaper; cheaper B) cheaper; more expensive C) more expensive; cheaper D) more expensive; more expensive