The number of times per year each dollar is used to transact an exchange is the:
a. quantity theory of money.
b. velocity of money.
c. equation of exchange.
d. turnover rate.
e. expenditure rate.
b
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
There are a few ship manufacturers in Polonia and each firm faces a downward sloping demand curve. The ship-building industry in Polonia is an example of a(n) ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
When demand is elastic: a. price elasticity of demand is greater than one
b. consumers are relatively responsive to changes in price. c. the percentage change in quantity demanded resulting from a price change is greater than the percentage change in price. d. all of the above are correct.
If MU = MC = P, an economist can judge with certainty that the distribution of output is
a. fair. b. equal. c. unbiased. d. efficient.