In the equation of exchange, velocity will tend to rise when:
a. the price level rises, other things being equal
b. real GDP rises, other things being equal.
c. the money supply declines, other things being equal.
d. all of the above.
d
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Many companies monitor their employees' Internet use and email. Why might they be doing this?
A) Because they like to spy. B) In order to improve morale. C) To gain inside information on new consumer trends. D) To reduce shirking.
The price elasticity of demand depends on how readily and easily consumers can switch their purchases from one product to another
a. True b. False Indicate whether the statement is true or false
When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related
a. True b. False Indicate whether the statement is true or false
Assume all capital is owned by firms, rather than by households. Under this assumption, capital is paid according to the value of its marginal product
a. only if this income is transmitted to households in the form of interest. b. only if this income is transmitted to households in the form of dividends. c. only if this income is transmitted to households in the form of interest or dividends. d. regardless of whether this income is transmitted to households in the form of interest or dividends or whether it is kept within firms as retained earnings.