Can changes in the growth rate of the velocity of money create a recession?
A. Yes, if the change is negative and large enough.
B. No, because changes in the growth rate of velocity are temporary.
C. No, because changes in the growth rate of velocity only affect inflation, not real growth.
D. Yes, if the change is an unexpected increase in the growth rate of the velocity of money.
Answer: A. Yes, if the change is negative and large enough.
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Florence is considering going into business for herself and has developed the following estimates of monthly costs and revenues to aid her in her decision-making process
She has decided to house the business in a building that she already owns, although she could rent the building to someone else for $1,000 per month. Estimated payments for utilities (electricity, natural gas, water, and telephone) are $475 per month. She will hire one employee at a total cost of $1,100 per month. Inventory is estimated to cost $2,800 per month. Finally, Florence earns $3,000 a month in her current job. a. How much monthly revenue would Florence have to take in to earn 0 economic profit? b. Assume that Florence has estimated her monthly revenue to be $9,000. In this case, Florence would earn an accounting profit (loss) of ________, and an economic profit (loss) of ________. c. Assume instead that Florence does not own a building, and that she will have to rent a building for $1,000 per month (all other estimates remain the same). In this case (assuming estimated monthly revenue is still $9,000), Florence would earn an accounting profit (loss) of ________, and an economic profit (loss) of ________. Fill in the blank(s) with correct word
M1 money includes all but which one of the following?
A. checkable deposits B. savings accounts C. paper money D. coins