According to the classical view,
a. velocity is constant, which means changes in price will cause changes in price or quantity.
b. quantity is constant, which means changes in the money supply could cause either changes in velocity or changes in prices.
c. velocity and price are constant so that changes in the money supply causes changes in quantity.
d. velocity and quantity are constant so that changes in the money supply cause changes in prices.
e. velocity is constant while quantity is variable so that changes in the money supply change both price and quantity.
d
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When unions raise wages beyond what productivity increases would permit,
A) more union workers are employed. B) there are higher wages for all union members. C) there is a redistribution of income from low- to high-seniority workers. D) nonunion workers wages in the economy also increase.
The IRS receives approximately
a. 80 percent of the taxes owed b. 50 percent of the taxes owed c. 40 percent of the taxes owed d. 20 percent of the taxes owed e. 10 percent of the taxes owed
Members of the Board of Governors of the Federal Reserve System are
a. elected by member banks to serve four-year terms. b. appointed by Congress for 14-year terms. c. appointed by the president for 14-year terms. d. appointed by the Supreme Court for lifetime terms.
The slope of a horizontal line is
A. infinite. B. zero. C. negative. D. continually changing.