If the nominal GDP is $500 billion and the money supply is $100 billion, the velocity of money is:

The BP schedule will be steeper the

a. more responsive capital flows are to the interest rate. b. less responsive capital flows are to the interest rate. c. smaller the marginal propensity to import. d. less likely an expansionary fiscal policy will lead to a balance of payments deficit.

The net loss in welfare from a quota is proportionately larger than for a tariff because: a. it does not result in government revenue

b. the loss in consumer surplus is greater than the gain to producers and the government. c. it prevents nations from fully realizing their competitive advantage. d. it brings about higher prices and revenues to domestic producers.