If the amount of money in circulation is $50 million and nominal GDP is $150 million, then the velocity of money is:
a. 0.33
b. 2.
c. 3.
d. impossible to determine from the information provided.
c
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You are having a party and one of your guests lights up a cigar without asking. Explain why this creates an externality
What will be an ideal response?
According to the textbook application, the International Organization for Standardization (ISO)has developed standards for environmental management. Identified as
a. ISO 1500 c. ISO 1400 b. ISO 15000 d. ISO 14000
The legal requirement that commercial banks hold reserves equal to some fraction of their deposits
a. limits the ability of banks to expand the money supply by extending additional loans. b. prevents the Fed from controlling the money supply since commercial banks can always offset the actions of the Fed. c. prevents runs on banks by depositors who fear that banks have insufficient assets to meet the claims of their depositors. d. limits the ability of the Treasury to expand the national debt.
Which of the following is a market transaction?
A. A stock increases in value over the 30 years that it is owned. B. A radio station changes its programming from classical to rock. C. Weather destroys a farmer's crops, leaving the farmer unable to buy groceries. D. A college student purchases a laptop computer.