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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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?
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