The quantity of money is $1 billion, the price level is 1.10, and real GDP is $10 billion. What is the velocity of circulation?
What will be an ideal response?
The velocity of circulation equals 11.
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The opportunity cost of any good or service is the
a. actual dollar cost of doing or making it. b. highest price that a seller can get for the item. c. value of the next best alternative. d. cost associated with a value judgment. e. cost of producing the good or service.
The Federal Reserve System
I. is the central bank for the United States. II. is a United States government owned bank. III. is a branch of the Treasury of the United States. A) I only B) I and II only C) I and III only D) I, II, and III
Critics of the Fed’s unconventional policies in 2009 and 2010 argued that determining which financial institutions would be bailed out and which would be allowed to fail was a political decision that rightfully belonged to Congress.
Answer the following statement true (T) or false (F)
Which characteristic of a monopolistically competitive firm causes it to have zero profits in the long run?
A. There are no barriers to entry. B. The firm has a slight control of its price. C. The firm sells a differentiated product. D. All of these cause the monopolistically competitive firm to have zero profits in the long run.