The price level is 3, total output is 500, and the money supply is 200. The velocity of money is
A) 7.5.
B) 2.5.
C) 2.0.
D) None of the above.
A
You might also like to view...
The production of capital goods, which are then used to produce consumer goods, is called
a. efficient production b. intermediation c. time preferences d. roundabout production e. derived production
Answer the following statements true (T) or false (F)
1. The short-run supply curve of a purely competitive industry tends to be steeper than the long-run supply curve. 2. The long-run supply curve for a competitive, decreasing-cost industry is downward-sloping. 3. The reason why the long-run supply curve for a purely competitive industry may be upward-sloping is because of diminishing marginal returns. 4. An upward-sloping long-run supply curve indicates a constant-cost industry. 5. Productive efficiency refers to a condition where marginal cost is equal to marginal revenue in the long run.