According to the equation of exchange, if M = $400, P = 8, and Y = $200, then V equals
A) 100.
B) 4.
C) 160.
D) 8.
B
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Expansionary fiscal policy involves increasing government purchases or increasing taxes
Indicate whether the statement is true or false
Under U.S. commercial policy, the escape clause results in
A) temporary quotas granted to firms injured by import competition. B) tariffs that offset export subsidies granted to foreign producers. C) a refusal of the U.S. to extradite anyone who escaped political oppression. D) tax advantages extended to minority-owned exporting firms. E) tariff advantages extended to certain Caribbean countries in the U.S. market.
When MR < MC for a firm, the firm should
A) reduce its level of output. B) stay at the same level of output. C) stop producing. D) increase output, unless P < AVC.
Average total cost is defined as:
A. total variable cost divided by quantity. B. quantity divided by total variable cost. C. the change in total variable cost divided by the change in quantity. D. total cost divided by quantity.