Let M = money supply; P = price level; V = velocity; Y = real GDP. The equation of exchange is given by:
A) M x P=V x Y.
B) M x V=P x Y.
C) M x Y=P x V.
D) M x V=(1/P) x Y.
Ans: B) M x V=P x Y.
Economics
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If the government increased its purchases of goods and services by $12,000, and this resulted in an eventual increase in GDP and income of $60,000, the MPS would be equal to
A) 0.2. B) 0.4. C) 0.8. D) 2.
Economics
Since 1960, life expectancy at birth has ________ in the United States
A) dropped slightly B) remained unchanged C) risen almost 10 years D) risen more than 17 years
Economics