The equation of exchange states that:
a. government spending = taxes plus the federal budget deficit
b. the reciprocal of the reserve requirement = the deposit expansion multiplier.
c. the money supply times the velocity of money = the price level times the quantity of goods and services produced.
d. the price level times the velocity of money = the money supply times the quantity of goods and services produced.
c
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Which of the following U.S. antitrust laws prohibits mergers through the acquisition of a firm's assets if the merger would lessen competition?
a. the Sherman Antitrust Act b. the Clayton Act c. the Robinson-Patman Act d. the Celler-Kefauver Anti-Merger Act e. the Federal Trade Commission Act
Which of the following practices are, at least in part, attempts to reduce moral hazard problems?
a. The income of waiters and waitresses depends heavily on tips. b. An employer pays below equilibrium wages because he thinks his employees are not working as hard as they could be. c. The professors leaves the room to prevent cheating on exams. d. Tenure professors are not supervised closely.
When construction workers seek work because the ground is covered in snow and ice, the unemployment rate goes up. This situation is an example of:
A. Frictional unemployment. B. Seasonal unemployment. C. Structural unemployment. D. Cyclical unemployment.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.