Which group of economists believes that the velocity of money is not necessarily stable? Explain their reasoning
Keynesians believe that the transactions demand for money influences the velocity of money. Higher
nominal income levels will increase people's transactions demand for money. If the money supply is fixed,
then people who demand more money to transact business go to the money market to borrow. As more
money becomes active, the velocity of money increases.
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A charter school is an independent _____ school with _____ financing
a. private; private b. public; public c. private; public d. public; private
Electricity accounts for almost 20% of the cost of making steel. A 10% increase in electricity prices results in steel firms decreasing production and thereby demanding 5% less electricity
Over many years, technological innovations can change the way steel firms make steel and reduce the industry's energy requirements. This suggests that the steel industry's short-run elasticity of demand for electricity is probably A) less than one in absolute terms in the short run. B) less than its long-run elasticity of demand for electricity. C) Both A and B above. D) Neither A nor B above.
Appendix: A Dutch auction implies all of the following except
a. more than one unit sale available b. higher prices later in the auction c. identical expected seller revenue for common value items d. greater expected seller revenue in estate sales with risk-averse bidders
The water and diamonds paradox can be explained by considering:
(a) Marginal Utility. (b) The difference between inferior and luxury goods. (c) Long run costs. (d) It cannot be explained.