The velocity of money is:
A. the number of transactions a typical dollar is used in during a given period.
B. how quickly money is created through the financial system.
C. how quickly money will be accepted as a medium of exchange in a given period.
D. the number of goods a typical dollar can buy in a given period.
Answer: A
You might also like to view...
Which of the following events is likely to generate a demand for U.S. dollars in the foreign exchange market?
A) A Saudi Arabian citizen buys a condominium in New York. B) An American student will begin her first year of college at Oxford, England. C) Wal-Mart imports 5,000 bicycles from China to sell in its stores. D) The Illinois Chamber of Commerce will finance and lead a trade mission to India.
What are the coordinates of the new equilibrium point established after the price increase?
a. P1; Q1
b. P2; Q2
c. P1; Q2
d. P2; Q1
It is necessary for the Federal Reserve to regulate the money supply because
A. banks tend to act in a counter-cyclical manner with regard to the money supply. B. banks are not profit oriented and tend to be unresponsive to the needs of business. C. left to itself, the banking system will create a gyrating money supply that will be destabilizing. D. left to itself, the banking system will not be able to increase or decrease the money supply.
Refer to the information provided in Table 13.3 below to answer the question(s) that follow. Table 13.3Price ($)Quantity4.001003.502003.003002.504002.005001.506001.00700Refer to Table 13.3. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the most the monopoly would expend in rent-seeking activity?
A. $300 B. $600 C. $900 D. $1,000