According to Keynes's theory of liquidity preference, velocity increases when
A) income increases.
B) wealth increases.
C) brokerage commissions increase.
D) interest rates increase.
D
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If the CPI was 127 in 1972 and is 324 today, then $10 in 1972 purchased the same amount of goods and services as
a. $3.92 purchases today. b. $25.51 purchases today. c. $207.00 purchases today. d. $324.00 purchases today.
Which of the following statements is (are) correct? According to the Feldstein-Horioka Saving Investment Puzzle
a. countries with relatively low saving to income ratios have relatively high investment to income ratios. b. there is no correlation between investment and saving in developed countries. c. countries with a high ratio of saving to income have high ratios of investment to income. d. Both a and b
Assume that a firm's marginal revenue just barely exceeds marginal cost. Under these conditions the firm should:
a. expand output. b. contract output. c. maintain output. d. There is insufficient information to answer the question.
Refer to the graph shown, which depicts a perfectly competitive firm. When it is maximizing profit, the total profit earned by the firm represented is:
A. $275. B. $330. C. $220. D. $605.