Because households have limited incomes, they must
a. rarely take vacations
b. live below the poverty line
c. allocate their spending carefully
d. gamble in casinos frequently
e. save for the future
C
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Which one of the following will cause velocity to increase?
A. Decreasing the interest rates B. Increasing the efficiency of the payments system C. Switching from weekly to monthly payroll checks D. Increasing the money supply
According to the endogenous growth model with human capital, what can we say about countries with more efficient schools?
A) They are richer. B) They are richer and grow faster. C) They are richer and grow more slowly. D) They grow faster.
For the average living standard of a nation to __________, __________ must increase faster than the price level
a. increase; nominal GDP b. increase; real GDP c. decrease; nominal GDP d. remain constant; nominal GDP e. decrease; real GDP
Along the horizontal segment of the aggregate supply curve, when real GDP
a. increases, the price level rises b. decreases, the price level falls c. increases, the price level does not change d. increases, the price level falls e. decreases, the price level rises