The equation of exchange is M× V = P× Y.
Answer the following statement true (T) or false (F)
True
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Intermediate goods are goods that are supplied to consumers without imposing any tax on them
a. True b. False Indicate whether the statement is true or false
Suppose Afghanistan receives monthly gifts of food and other consumption goods from the world's nations. What effect will these gifts have on the Afghanistan’s labor market?
a. The demand for labor will rise. b. The wage will rise and employment will fall. c. Fewer jobs will be available and wages will be lower. d. The gifts will have no effect on the labor market.
Which of the following is NOT one of the common explanations given for the U.S. trade deficit?
A. Other countries subsidize their exports. B. The U.S. government has a large budget deficit. C. The United States is a wealthy, stable country, making it attractive for loans from other countries. D. U.S. income tax rates are high compared to those in other countries.
Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When income increases to $12,000, saving is
A. $1,680. B. $1,800. C. $2,200. D. $3,000.