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.
Answer: D
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Which of the following is a limitation of using arithmetic averages to calculate growth rates?
A) Arithmetic averages do not capture the exponential nature of growth and thus are not apt for long-run prediction. B) Arithmetic averages cannot be used in case of negative growth. C) Arithmetic averages are difficult to calculate. D) The calculation of growth using arithmetic averages requires more data than other methods.
The demand for factor inputs:
A. is generally constant across most factor markets. B. depends upon the markets for the goods that they are used to produce. C. is independent of how much they contribute to the value of the end product. D. is referred to as imputed demand.
When a second firm enters a monopolist's market,
A. the monopolist's demand curve decreases. B. the monopolist's demand curve increases. C. the monopolist's supply curve decreases. D. the monopolist's supply curve increases.
When the dollar depreciates relative to the pound, the pound price of the dollar
A) increases. B) decreases. C) does not change. D) increases or decreases, depending on the amount of the depreciation. E) changes in the next period.