The equation of exchange is an accounting identity that
a. relates the money supply to nominal GDP.
b. equates the demand for money with the supply of money.
c. relates the money supply to real GDP.
d. accounts use to balance assets and liabilities.
a
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________ will lead to a decrease in the gross domestic product of a country, all other variables remaining unchanged
A) An increase in the expenditure on investment B) A decrease in the expenditure on investment C) An increase in exports D) A decrease in imports
If a consumer is maximizing his/her utility for a given income, the:
a. marginal utility for every good purchased would be the same. b. marginal utility per dollar spent for all goods would be the same. c. marginal utility per dollar for all goods would be at a maximum. d. total expenditure on each good would be the same. e. number of units of each good consumed would be the same.
When Pam from Pennsylvania buys stock in Ford Motor Co., she is contributing to:
A. domestic portfolio investment in the U.S. B. capital outflow for the U.S. C. capital inflow for the U.S. D. foreign direct investment for the U.S.
Among arguments for and against advertising, both sides agree that advertising leads to
a. higher prices and less competitive markets. b. higher prices and more competitive markets. c. lower prices and more competitive markets. d. None of the above is correct. The debate fails to resolve the question of advertising's effect on prices and competition.