Given the quantity theory of money 1/V represents
A) the velocity of money.
B) the number of times the average $ changes hands.
C) the proportion of nominal income held as a medium of exchange.
D) PY.
C
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Using a good as a medium of exchange confers the benefit that
A) the need to quote so many prices in trade is reduced. B) the need for a double coincidence of wants is greatly increased. C) the need for specialization is reduced. D) transactions costs are increased, but they now may be paid in money terms.
Refer to the table shown. The average fixed cost of producing 5 units of output is:Units of outputTotal cost05111216320423525626
A. $0. B. $1. C. $2. D. $3.
One of the external costs associated with illegal methamphetamine production is the
A. increased difficulty illegal methamphetamine producers face in obtaining their ingredients. B. increased difficulty of purchasing some over-the-counter cold medications. C. increased difficulty of purchasing some over-the-counter cold medications as well as a substitution of somewhat less effective ingredients in some over-the-counter cold medications. D. substitution of somewhat less effective ingredients in some over-the-counter cold medications.
When the level of aggregate production is less than the potential output level, this implies that unemployment is high. Jobs are scarce and workers are abundant, which causes nominal wages to fall over time. The SRAS will shift to the left, moving the short run level of aggregate production closer to the potential output level.
Indicate whether the statement is true or false.