According to the equation of exchange, if Real GDP is $3 trillion and the money supply is $0.5 trillion, then velocity
A) must be 6.
B) must be 1/6.
C) must be 4 trillion.
D) must be 1/4 trillion.
E) cannot be determined without knowing what the price level is.
E
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As the marginal propensity to consume (MPC) decreases, the spending multiplier
a. increases. b. decreases. c. remains constant. d. becomes indefinable.
One thousand tickets are sold at $1 each for a color television valued at $350. What is the expected value of the gain if a person purchases one ticket?
A. -$0.001 B. -$349 C. -$0.65 D. -$0.80
If the MPC is 0.8, what change in investment spending is required to effect a total change in income by $60 billion?
A. $25 billion B. $15 billion C. $20 billion D. $12 billion
What additional sources of risk come from international investments?
What will be an ideal response?