Which one of the following will cause velocity to increase?
a. a decrease in interest rates
b. increasing the efficiency of the payments system
c. switching from weekly to monthly payroll checks
d. an increase in the money supply
b
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If resource prices are flexible, the long-run aggregate supply curve is vertical
a. True b. False Indicate whether the statement is true or false
The Jones family is going to Disney World and has set a budget of $2000 for visiting the theme park and hotel accommodations. Their original plan was to spend three days at the park and two nights in the hotel. Mrs. Jones unexpectedly listens to a timeshare sales pitch and she is paid $400 for enduring the ordeal. The family decides to spend an extra day at the park and two extra nights in the
hotel. For the Jones family, we can be certain that a. hotels nights are an inferior good b. their budget line has shifted to the left c. theme parks days are an inferior good d. hotel nights are a normal good e. their budget line has changed its slope
A broad and liquid market means that
a. stock markets list a large number of shares. b. owners can sell stock but only at a discount. c. shareholders can sell at any time at the market price d. insider trading laws are observed. e. none of the above.
If the price level is assumed to be fixed, which of the following is true?
a. Real and nominal variable changes must be distinguished. b. The economy is at full employment. c. Changes in nominal income equal changes in real income. d. The economy is at equilibrium.