In 2007-2009, the Fed cut interest rates to limit the international financial crisis. What is the effect of this on velocity?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to interest rates.
a
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In a long-run perfectly competitive equilibrium
A) P = MR = MC > ATC. B) P = MR > MC = ATC. C) P = MR = MC = ATC. D) P > MR > MC = ATC.
If your marginal utility from your last session with your personal trainer is equal to the price they charged you, then
A. you have had exactly the right number of sessions. B. you have had too many sessions. C. you have not had enough sessions. D. there is no way to determine whether you have had enough sessions.
If income were distributed equally our economic _________ would suffer.
Fill in the blank(s) with the appropriate word(s).
Which of the following is the most likely side effect of an increase in the relative size of the underground economy with the passage of time?
A. The growth rate of real GDP will tend to understate the growth rate of total output. B. The growth rate of real GDP will tend to overstate the growth rate of total output. C. The GDP deflator will tend to overstate any increase in inflation. D. The GDP deflator will tend to understate any increase in inflation.