The asset substitution effect tends to
A. cause an increase in savings.
B. cause people to retire early.
C. cause a decrease in savings.
D. cause people to retire later.
Answer: C
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The quantity of money in an economy is $9 million, and the velocity of circulation is 3. Nominal GDP in this economy is ________
A) $6 million B) $9 million C) $3 million D) $27 million
Tanya is a manager at a global firm that has operations located in Brazil, India, and Japan. Tanya is in the process of making a fundamental analysis in order to forecast exchange rates in each country. Which of the following is a confidence factor that Tanya should consider in trying to predict exchange rate movements in each country?
A) What are the expectations of the market with respect to the political environment? B) Have there been significant national events that have appeared in the news lately? C) At what rates do there appear to be buy and sell orders? D) What trends do the charts show?
Proponents of the estate and gift tax argue that the tax is necessary because:
A. it generates a large portion of total federal revenue. B. it prevents "unfair" accumulation of wealth across generations. C. it is only applied to items that have not previously been taxed. D. it is the primary source of funding for Medicare and Medicaid.
Economic ________ occurs when two or more nations join to form a free-trade zone.
A. conjugation B. integration C. correlation D. immigration