If the money supply is $80 billion, the velocity of money is 5, and real GDP is $320 billion, then the price level equals:
a. 51.20.
b. 20.
c. 4.
d. 2.75.
e. 1.25.
e
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A country reports that its government outlays total $0.8 trillion and its tax revenues total $0.6 trillion. Does the country have a budget surplus or deficit and what is the surplus or deficit?
What will be an ideal response?
Suppose the price of chocolate chip cookies is $4.00 per pound and the price of a slice of cake is $2.00 per slice. The relative price of cookies in terms of cake is
A) $2.00 per cookie. B) $4.00 per cookie. C) 1/2 slice of cake per cookie. D) 2 slices of cake per cookie.
If real money demand increases 5% and real money supply increases 10%, by about how much does the price level change?
A) Falls by 5% B) Unchanged C) Rises by 2% D) Rises by 5%
Portfolio investment and foreign direct investment are methods through which
A) ownership in assets are acquired in countries other than one's home country. B) U.S. residents invest funds in companies that export goods. C) U.S. residents invest funds in companies that import goods. D) short-term investments are converted to long-term ones.