In the quantity theory of money, velocity is assumed
A. to be a declining number.
B. to increase with increases in the money supply.
C. to equal 1.4.
D. constant.
Answer: D
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The tax wedge in the figure above is equal to ________ per hour, which creates an after-tax real wage rate of ________ per hour and employment of ________ billion hours per year
A) $10; $35; 250 B) $10; $35; 200 C) $15; $20; 200 D) $5; $35; 200 E) $15; $30; 250
Teams have an incentive problem called free-riding
Indicate whether the statement is true or false
If your disposable income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000, your marginal propensity to consume (MPC) is:
A. 0.2. B. 0.4. C. 0.5. D. 0.8.
Command-and-control policies are undesirable ways of reducing pollution because the means of abatement they mandate may not be efficient for all firms.
Answer the following statement true (T) or false (F)