The velocity of money is the:
A. relationship between the money supply and the price level.
B. number of times per year the average dollar is spent on final goods and services.
C. relationship between asset and transactions demands for money.
D. price level divided by aggregate supply.
B. number of times per year the average dollar is spent on final goods and services.
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The trade-offs facing consumers include:
A) how to allocate income across goods and serves. B) how to allocate income between consumption and savings. C) both A and B D) none of the above
Which of the following would cause the consumption function to shift downward?
a. A decrease in taxes b. A decrease in interest rates c. Consumers become more pessimistic about the future d. Consumers become more optimistic about the future e. None of the above