The quantity theory of money relies on which variable to remain constant?
A. Velocity of money
B. Money supply
C. Price level
D. Aggregate spending.
A. Velocity of money
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A firm's total fixed cost (TFC) is a cost
A) it is certain ("fixed") that the firm must pay. B) that does not change as output changes. C) that is dependent on marginal cost. D) that is paid in only the long run.
(Consider This) The story about economist Irving Fisher's conversation with his masseuse illustrates that interest payments arise because of:
A. the possibility of inflation. B. the reality of credit risk. C. imperfect information about the future. D. the time-value of money.
The long run refers to a time period
A) during which a firm is able to purchase all of its inputs, including its plant and equipment. B) long enough for a firm to vary all of its inputs, to adopt new technology, and change the size of its physical plant. C) long enough for a firm to pay all of its creditors in full. D) long enough for a firm to change the use of its variable inputs.
Supply shift to the left=
What will be an ideal response?