If financial news broadcasts reported that inflation was likely to rise significantly next year, what would most likely happen to the velocity of circulation?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to inflation.
b
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When the price of Cosmopolitan magazine decreases from $5 to $3, the quantity demanded increases from 600,000 to 1,000,000 copies each month. Using the midpoint method, the price elasticity of demand equals
A) 1. B) 3. C) 2. D) 1/3. E) 1/2.
U.S. citizens migrating to Illinois in the first half of the 19th century would most likely have come from:
a. Massachusetts and New Jersey. b. California and Oregon. c. North and South Carolina. d. Up the Mississippi River from Louisiana and Mississippi.
If the economy is operating at an unemployment rate above the full employment rate,
a. actual output is above potential output b. actual output is below potential output c. frictional unemployment has been eliminated d. structural unemployment has been eliminated e. actual output equals potential output
Money market mutual funds (MMMFs) accounts are
a. M1 money b. M2 and gold backed paper c. gold backed paper d. near money e. not money