The velocity of money ________
A) represents the average number of times a dollar turns over through the year
B) provides the link between the money supply and nominal income
C) times the money supply should equal total income, according to the equation of exchange
D) all of the above
E) none of the above
D
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is the difference in the deadweight loss compared to a monopoly in this market?
A. A monopoly would create $6,666.67 more deadweight loss B. A monopoly would create $6,666.67 less deadweight loss C. A monopoly would create $5,555.56 more deadweight loss D. A monopoly would create $5,555.56 less deadweight loss
Which of the following is most likely to increase the incentive to invest, produce, and employ others?
a. an increase in government expenditures to provide subsidies for large banks that made bad investment decisions b. an increase in government expenditures that changes the composition of aggregate demand c. a reduction in tax rates d. an increase in payments to unemployed workers financed by borrowing
If the price of X and Y are $2 and $4 per unit, respectively, to maximize total utility this consumer should buy:
A) 1 units of X and 1 units of Y. B) 2 units of X and 2 units of Y. C) 1 units of X and 2 units of Y. D) 5 units of X and no units of Y.