According to the equation of exchange, how can national income grow even though the amount of money does not?
A) price level increases
B) real GDP decrease
C) velocity increases
D) velocity decreases
C
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Your electrician accepts payment only in cash in order to avoid taxes. If you pay him $100, ________
A) the GDP of your country will increase B) the GDP of your country will remain unchanged C) the trade surplus of your country will increase D) the GDP of your country will fall
The government currently has a time limit on welfare. Although families may be eligible for welfare on more than one occasion, eligibility per family runs out after
a. six months of benefits b. two years of benefits c. five years of benefits d. ten years of benefits e. never
James took out a fixed-interest-rate loan when the CPI was 200 . He expected the CPI to increase to 206 but it actually increased to 204 . The real interest rate he paid is
a. higher than he had expected, and the real value of the loan is higher than he had expected. b. higher than he had expected, and the real value of the loan is lower than he had expected. c. lower than he had expected, and the real value of the loan is higher than he had expected. d. lower then he had expected, and the real value of the loan is lower than he had expected.
How much is the tax?
A. 10 cents
B. 20 cents
C. 30 cents
D. 40 cents