According to the equation of exchange, the
A) quantity of money divided by the inflation rate equals real GDP.
B) quantity of money minus the velocity of circulation equals real GDP minus the price level.
C) quantity of money multiplied by the velocity of circulation equals nominal GDP.
D) velocity of circulation is always smaller than the inflation rate.
E) quantity of money multiplied by the inflation rate equals nominal GDP.
C
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If a restaurant like Buffalo Wild Wings has higher costs than a comparable Hooters restaurant, the only way it can have higher profits is if
A) the demand for its food is higher than the demand for food at Hooters. B) it sells the quantity associated with its minimum average total cost. C) it has more locations than Hooters. D) its marginal revenue is lower than the marginal revenue of Hooters.
Which of the following is a true statement about equilibrium in the foreign exchange market?
A) Net exports are zero. B) The expected return on domestic assets is equal to the expected return on foreign assets. C) Foreigners wish to purchase the entire supply of domestic assets. D) The relevant central banks meet regularly to choose the equilibrium exchange rate.
When does an incomplete contract prove beneficial?
Exhibit 16-4 Marginal tax rate lines
?
In Exhibit 16-4, line C represents a(n):
A. regressive tax. B. progressive tax. C. proportional tax. D. ability-to-pay tax.