If the money supply is held constant as both real and nominal GDP are rising.
a. the velocity of money will rise.
b. the velocity of money will fall.
c. interest rates will rise
d. both (a) and (c)
d
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In terms of unemployment, hysteresis models try to explain why
a. cyclical unemployment is always present. b. structural unemployment cannot be eradicated. c. high unemployment persists even after its initial cause is long past. d. frictional unemployment is the cause of hysteresis.
Peak load pricing helps firms gain profit because
A. people are willing to pay more for the first units they consume of a good. B. low prices when demand is strong means high volume sales. C. they can serve their customers with a smaller capital base. D. demand shifts left during peak load hours.
According to Keynesian theory
A. changes in the equilibrium interest rate will not always equate saving and investment. B. prices and wages are flexible downward. C. say's law is valid. D. savers and investors have identical motives.
What tool would you employ to analyze the relationship between gasoline prices and consumer? behavior?
A.Refining models. B.Fashion models. C.Economic models. D.Accounting models.