What is the effect on velocity if payments are made more often?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to payments.
b
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A depreciation of the U.S. dollar makes American goods cheaper relative to foreign goods, resulting in a ________ in net exports in the U.S. and a ________ shift of the IS curve in the U.S., everything else held constant
A) fall; leftward B) rise; leftward C) fall; rightward D) rise; rightward
If wages do not fall when there is an excess supply of labor, then ________.
A. there is a speculative bubble in the labor market B. the economy cannot be in a slump C. Say's Law holds D. wages are "sticky downwards"
Which of following is not an important category of bias in human decision making?
A. Limited processing power. B. Reluctance to change. C. Single-mindedness. D. Temptation.
Suppose the real interest rate in Brazil is 40 percent, actual inflation is 20 percent, and expected inflation is 20 percent. The nominal interest must then be:
A. 40 percent. B. 80 percent. C. 60 percent. D. 20 percent.