Velocity can be computed with the formula
a. (Annual spending)/(Money supply).
b. (Annual income)/(Annual spending).
c. (Average income)/(Average spending).
d. (Money supply)/(Average income).
a
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If an average cost pricing rule is imposed on the firm in the figure above, the consumer surplus will be
A) zero. B) $450. C) $400. D) $200.
If households choose to take some fraction of each check they deposit and hold it as currency, then the simple deposit multiplier ________ the real-world multiplier
A) is equal to B) is greater than C) bears no relationship to D) is less than
With respect to the Keynesian liquidity trap, at very low levels of income, equilibrium in the money market occurs at points along the flat portion of the money demand schedule where
a. the elasticity of money demand is extremely high. b. money demand is associated with a low interest elasticity. c. money demand is completely interest inelastic. d. None of the above
Bank failures in the U.S
a. occurred frequently through the 1960s and declined since then. b. occurred infrequently through the 1960s and have become more common since then. c. occurred frequently through the 1930s, declined after that time, and became more common in 2008. d. occurred infrequently through the 1930s, increased after that time, and became less common in 2008.