Historically, velocity has been:
A. relatively stable, though the Great Depression of the 1930s caused some significant fluctuations.
B. in sync with the business cycle, increasing during times of decline and increasing with recovery.
C. relatively stable, though the recent crisis has temporarily caused some significant changes.
D. in sync with the business cycle, slowing during times of decline and increasing with recovery.
Answer: C
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The U.S. dollar will depreciate if the Canadian inflation rate falls from 5 percent to 3 percent
Indicate whether the statement is true or false
The CPI is a measure of the overall cost of the goods and services bought by
a. a typical firm. b. the government. c. a typical consumer. d. All of the above are correct.
One key assumption of the classical model is
A. wages are sticky. B. government spending plays a major role. C. prices are sticky. D. money illusion cannot fool workers.
How do exports affect buyers' consumer surplus?
What will be an ideal response?