A look at the historical data indicates that velocity for M1
A. has been more variable than the velocity for M2, but both have been fairly constant for the past 65 years.
B. and M2 have both trended downward, but velocity for M2 has been more erratic than velocity for M1.
C. has been fairly constant for the past 65 years, but velocity for M2 has trended downward.
D. has trended upward in the past 65 years, but velocity for M2 has been more constant.
Answer: D
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Aggregate demand increases when
A) foreign incomes fall. B) interest rates rise. C) the exchange rate rises. D) None of the above answers is correct.
In the case of Thailand in 1997, the Thai government was running a large:
A) current account surplus, requiring capital inflows from abroad. B) current account deficit, requiring capital inflows from abroad. C) current account surplus, requiring capital outflows. D) current account deficit, requiring capital outflows.
The reduction in transaction costs provided by financial intermediaries benefit:
A. small borrowers but not small savers. B. society in the net, but small savers bear much of the cost. C. small borrowers and small savers. D. large borrowers but not small savers.
A p-value of 0.03 means that there is only a 0.03% chance of obtaining the measured result.
Answer the following statement true (T) or false (F)