Assuming a constant nominal GDP, would the velocity of M1 equal the velocity of M2? Explain.
What will be an ideal response?
No, the velocity of M1 would be greater than the velocity of M2. The formula for velocity is nominal GDP/M. Given a constant numerator and the fact that M2 > M1 the velocity of M1 has to exceed the velocity of M2.
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Refer to Scenario 14.1. Marco and Lisette decide to help each other out and agree to split any medical bills from their doctor. With this new arrangement, Marco's dominant strategy will give him a net benefit of
A) $45. B) $75. C) $120. D) $150.
In 1993, the debate heated up in the United States about the North American Free Trade Agreement (NAFTA), which proposed to reduce barriers to trade (such as taxes on or limits to imports) among Canada, the United States, and Mexico
Some people opposed strongly the agreement, arguing that an influx of foreign goods under NAFTA would disrupt the U.S. economy, harm domestic industries, and throw American workers out of work. How might a classical economist respond to these concerns? Would you expect a Keynesian economist to be more or less sympathetic to these concerns than the classical economist? Why?
When wages increase, the income effect a. increases the quantity of labor supplied b. increases the supply of labor
c. decreases the quantity of labor supplied d. decreases the supply of labor.
A ______ percentage of the French population is obese; they consume _______ fat than Americans do.
a. large; more b. large; less c. small; more d. small; less