Suppose money supply (M) = $500, price level (P) = 2, and real GDP (Y) = $1,000. Calculate the value of velocity using the equation of exchange.

China's exchange rate system from 1994 through 2005 is an example of

A) a flexible exchange rate system. B) a fixed exchange rate system. C) a managed float exchange rate system. D) the Bretton Woods System. E) a floating exchange rate system.

The marginal propensity to save is:

a. the change in saving divided by the change in disposable income. b. the change in disposable income divided by the change in saving. c. saving divided by disposable income. d. disposable income divided by saving. e. saving divided by consumption.