The formula of the equation of exchange is
A) MS = VPY. B) MSV = PY. C) MS/P = Y. D) MS = Y.
B
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If the required reserve ratio is 100 percent, could the Federal Reserve still change the money supply with open market operations? Explain whether they could or could not
What will be an ideal response?
Economists generally assume that the main goal of most businesses in the economy is to
A. provide jobs for the local population. B. avoid having to make very many decisions. C. maximize profits. D. be responsible corporate citizens.
An expenditure schedule that lies below the full employment level of GDP will cause
A. rising prices. B. increasing output. C. falling inventories. D. falling prices.
Why do people tend to eat more at all-you-can-eat buffet restaurants than at restaurants where each item is purchased separately?
A. Once the all-you-can-eat meal is purchased, consumers view additional trips back to the buffet as having a price of zero. B. MU/P is consistently greater at all-you-can-eat restaurants. C. People who eat at all-you-can-eat restaurants do not experience diminishing marginal utility. D. Food at all-you-can-eat restaurants tends to have fewer calories, so consumers feel the need to consume a greater volume of food.