In an economy experiencing hyperinflation, we expect to observe
A) an increase in the demand for money and an increase in velocity.
B) an increase in the demand for money and a reduction in velocity.
C) a decrease in the demand for money and an increase in velocity.
D) a decrease in the demand for money and a reduction in velocity.
Ans: C) a decrease in the demand for money and an increase in velocity.
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In 2008, Timothy Geithner referred to investment banks, money market mutual funds, hedge funds, and other financial firms engaged in similar activities as the
A) shadow banking system. B) securitization market. C) commercial banking system. D) secondary market.
A decrease in the current minimum wage would: a. decrease employment for low skill workers
b. increase firm's demand curves for low skill workers. c. increase the supply of low skill workers. d. decrease the incomes of some low skill workers.
Which of the following involves a regulator setting a price that a firm cannot exceed for a few years?
a. Price cap regulation b. Cost-plus regulation c. Regulatory capture d. Exclusive dealing
Which of the following is LEAST likely to be a reason for the decline in U.S. union membership?
A) declines in manufacturing employment B) increases in the work force of the public sector C) deregulation of transportation industries D) increasingly more immigrant workers to fill unskilled job positions