The equation of exchange specifies that
A. velocity and money supply are directly related.
B. MsP = VY.
C. Ms = PVY.
D. MsV = PY.
Answer: D
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In 1973, the Club of Rome published a book titled The Limits to Growth, which predicted that economic growth would likely end in high-income countries because of
A) increasing pollution and the depletion of natural resources. B) rapid increases in government debt. C) declining populations. D) increases in outsourcing of the production of goods and services to low-income countries.
Errors-in-variables bias
A) is only a problem in small samples. B) arises from error in the measurement of the independent variable. C) becomes larger as the variance in the explanatory variable increases relative to the error variance. D) is particularly severe when the source is an error in the measurement of the dependent variable.
When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____
a. reliance relationships b. uncertainty c. moral hazard d. creative ingenuity e. insurance reliance
The long-run supply curve of an industry equals the industry's
a. long-run marginal cost curve. b. the horizontal sum of all firms' supply curves at any point in time. c. long-run average cost curve. d. long-run total variable cost curve.