The velocity of money in circulation measures:
a. the average length of time that people hold wealth
b. how fast aggregate spending will increase for a given decline in money demand.
c. how fast inflation will rise for a given increase in the money supply.
d. how quickly money changes hands.
e. how quickly banks can create money.
d
You might also like to view...
Assume X is an inferior good. If the incomes of people who buy X increase, demand for X will increase as well, but by a smaller percentage than the increase in income
Indicate whether the statement is true or false
A noncooperative game is
A) companies colluding in order to make higher than competitive rates of return. B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry. C) a game in which firms will not negotiate in any way. D) when plans made by firms are known as game strategies.
Barter is the:
A. direct exchange of goods and services. B. exchange of goods, but not services. C. system that does not depend on a coincidence of wants. D. system used in advanced economies.
If the United States were to impose 100 percent tariffs on imports of Chinese shrimp, what would most economists conclude?
A. This decision can be justified by using the national defense argument. B. This decision can be justified by using the infant-industry argument. C. This decision is not justified in terms of economic well-being but may make sense for political reasons. D. This policy is a way to keep foreign producers from being exploited by Americans.