Which of the following will increase the velocity of circulation?
a. Interest rates increase.
b. The inflation rate decreases.
c. Federal banking legislation abolishes credit cards.
d. Employers decide to pay employees once a month instead of once a week.
a
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The price at which one currency exchanges for another currency is called the
A) foreign exchange rate. B) value of the dollar. C) currency exchange rate. D) net export exchange rate. E) money exchange rate.
An increase in Todd's wealth from $2 million to $4 million raises his utility from 400 units to 500 units. If he has a utility of wealth curve with the typical shape showing risk aversion, then with a wealth of $6 million his utility might be
A) 500 units. B) 570 units. C) 600 units. D) 620 units.
Government revenue generated by the issue of currency is known as ________
A) monetizing the debt B) triage C) seignorage D) hyperinflation
Which statement is true about automatic stabilizers?
A. They have eliminated the business cycle. B. They have helped smooth out the business cycle. C. They have been completely ineffective. D. None of the statements are true of automatic stabilizers.