The principal factor determining velocity is the
A. level of income.
B. frequency with which paychecks are distributed.
C. frequency with which taxes are paid.
D. growth rate of real output.
Answer: B
You might also like to view...
The application of Solow's growth theory to the explanation of the slowdown in productivity growth in the United States suggests that the slowdown is primarily caused by
A) reduced growth in the capital stock per hour of work. B) reduced growth in the technical change or total factor productivity. C) slow residual growth of the capital stock. D) ignorance since people save and invest less.
A renewable resource:
A. can be replenished naturally over time. B. is used to regenerate an old piece of capital. C. is used when adopting new technology, and replacing old capital. D. cannot be replenished naturally over time.
The expenditure approach to GDP accounting includes:
a. consumption b. investment. c. net exports. d. all of the above.
Nominal GDP will always equal real GDP: a. if prices are declining
b. in the base year. c. if prices are increasing. d. if the economy's total production does not change.