According to the quantity equation, the price level would change less than proportionately with a rise in the money supply if there were also
a. either a rise in output or a rise in the rate at which money changes hands.
b. either a rise in output or a fall in the rate at which money changes hands.
c. either a fall in output or a rise in the rate at which money changes hands.
d. either a fall in output or a fall in the rate at which money changes hands.
b
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The more firms there are in a market, the:
A. larger will be the price effect of one firm's output decision. B. smaller will be the price effect of one firm's output decision. C. more collusion is likely to happen. D. None of these statements is true.
Assume that the MPC is 0.9 and investment falls by $30 billion. What is the change in real GDP?
A. ?$300 billion B. ?$270 billion C. ?$93 billion D. ?$39 billion
The opportunity cost of the chosen item or activity is the value of the best alternative you must pass up.
a) false b) True
Which of the following statements is correct?
A. From the bank’s point of view, loans to customers are assets of the bank. B. From the bank’s point of view, loans to customers are liabilities of the bank. C. From the customer’s point of view, loans to customers are assets of the customer. D. From the customer’s point of view, loans to customers are liabilities of the customer. E. a and b only F. a and d only