The income velocity of money is the absolute number of times, on average, that
A) people purchase goods and services during a year.
B) each monetary unit is spent on final goods and services.
C) each unit of real GDP is produced by business firms.
D) each one-unit increase in the price level occurs.
B
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All else equal, the ________ the coupon rate on a bond, the ________ the bond's duration
A) higher; longer B) higher; shorter C) lower; shorter D) greater; longer
The most direct and important consequence of an increase in asymmetric information problems is ________
A) a decrease in the probability of loan repayment B) inability to assess the probability of loan repayment C) unwillingness of borrowers to accept the market rate of interest D) inability of creditors to acquire enough funds to meet borrowers' demand
Each member of the Federal Reserve's Board of Governors is appointed for life
a. True b. False Indicate whether the statement is true or false
Which of the following statements about models is correct?
a. The more details a model includes, the better the model. b. Models assume away irrelevant details. c. Models cannot be used to explain how the economy functions. d. Models cannot be used to make predictions.