If the stock of money is $200 billion, velocity is 5, and the price level is 5, what is income?
A. $8 billion
B. $40 billion
C. $200 billion
D. $5,000 billion
Answer: C
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The supply curve for tickets for a sporting event
A) is perfectly inelastic. B) is vertical. C) has a price elasticity of zero. D) All of the above.
When the Fed sells bonds in the open market, interest rates _______ and aggregate demand shifts to the _______.
A. Rise; left B. Rise; right C. Fall; left D. Fall; right
The modern era of trade unionism began around _______ with the founding of the _______.
Fill in the blank(s) with the appropriate word(s).
After the American Civil War, many prominent Southerners lamented the fact that the South “overproduced” cotton and “underproduced” food. In fact, the South did import a very large percentage of its food. Nevertheless, rather than reduce cotton production and grow more food, Southern farmers did the opposite because
A. they were irrational and distraught over the loss of slavery. B. the South had a comparative advantage in cotton production. C. the North had a comparative advantage in cotton production. D. corn was absolutely cheaper to produce in the North.