If the velocity of the M1 money supply is 4 and nominal GDP is $200 billion, the stock of money in circulation must be:
A. $25 billion.
B. $50 billion.
C. $100 billion.
D. $800 billion.
Answer: B
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The more generous unemployment benefits are, the ________ the unemployment rate remains and the ________ the time frame people tend to remain unemployed
A) higher; longer B) higher; shorter C) lower; longer D) lower; shorter
Compared to a tariff, an import quota, which restricts imports to the same amount as the tariff, will leave the country as a whole
A) worse off than a comparable tariff. B) not as bad off as a comparable tariff. C) about the same as a comparable tariff. D) Any of the above can be true.
Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers? The equilibrium wage
a. increased, and the equilibrium quantity of labor increased. b. increased, and the equilibrium quantity of labor decreased. c. decreased, and the equilibrium quantity of labor increased. d. decreased, and the equilibrium quantity of labor decreased.
?In the simplest Keynesian expenditure model, which of the following is fixed to allow for easy evaluation of changes in demand due to real income?
a. the price level
b. interest rates
c. tastes and preferences
d. future expectations