Which of the following will reduce the velocity of circulation of the money stock?
a. The inflation rate increases.
b. The interest rate falls.
c. Credit cards are used more frequently.
d. More employees are paid once a week instead of once a month.
b
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The uncertainty costs of inflation cause ________ because ________
A) a decrease in investment and slower growth; people focus on the long run and not the short run B) an increase in investment and faster growth; people focus on the short run and not the long run C) a decrease in investment and slower growth; people increase their demand for money D) a decrease in investment and slower growth; people focus on the short run and not the long run E) an increase in investment and faster growth; people decrease their demand for money
Which of the following statements is true?
a. In the case of positive externalities, a private market will produce too little of a good compared to the socially efficient level of output. b. In the case of positive externalities, a private market will produce too much of a good compared to the socially efficient level of output. c. Negative externalities occur when benefits accrue to individuals not directly involved in a transaction. d. Positive externalities occur when costs are imposed on individuals not directly involved in a transaction. e. In the case of negative externalities, a private market will produce too little of a good compared to the socially efficient level of output.
U.S. gross domestic product is converted to U.S. gross national product by
a. adding the value of output produced by U.S.-owned resources in foreign countries. b. subtracting the value of output produced by U.S.-owned resources in foreign countries. c. subtracting the value of output produced in the United States by foreign-owned resources. d. both adding the value of output produced by U.S.-owned resources in foreign countries AND subtracting the value of output produced in the United States by foreign-owned resources.
Which of the following is true?
a. During any given year, the size of the economic pie available for allocation to individuals is fixed. b. When the link between worker productivity and reward is weakened, individuals have less incentive to create income. c. If they reduce income inequality, taxes and income transfers will not alter the incentive of individuals to engage in productive activity. d. The total output of an economy is unrelated to the distribution of income.