Which of the following is correct?
A. The money supply growth rate and the growth rate of velocity can both be changed permanently.
B. The money supply growth rate can be changed permanently, but changes in the growth rate of velocity are always temporary.
C. The growth rate of velocity can be changed permanently but changes in the money supply growth rate are always temporary.
D. Neither the money supply growth rate nor the growth rate of velocity can be changed permanently.
Ans: B. The money supply growth rate can be changed permanently, but changes in the growth rate of velocity are always temporary.
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The income paid for the use of land is called
A) rent. B) wages. C) interest. D) land capital. E) profit.
Most businesses probably claim they use cost-plus-markup pricing because
A) they are price takers. B) they are maximizing net revenue. C) they have no better way to explain their price-setting behavior. D) they are responsible for long-run inflation.