All other things unchanged, the velocity of money will _______ if the quantity of money demanded _______.

Which of the following policies should a country implement in an economic downturn to avoid a Paradox of Thrift?

a) Implement policies to encourage saving. b) Implement policies to encourage greater consumption. c) Raise taxes to ensure the government remains funded. d) Reduce overall government spending.

Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widgets produced domestically?

What will be an ideal response?