The velocity of money in circulation measures:
a. the average length of time that people hold wealth
b. how fast aggregate spending will increase for a given decline in money demand.
c. how fast inflation will rise for a given increase in the money supply.
d. how quickly money changes hands.
e. how quickly banks can create money.
d
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The most common type of simple loan is a(an)
A) automobile loan from a bank. B) mortgage loan from a bank. C) commercial loan from a bank. D) corporate bond.
Suppose an industry receives protection from the government in the form of tariffs
A number of years later, it is observed that the quantity supplied by domestic firms had decreased and that the domestic price was substantially greater than the world price. We could conclude that A) the tariff had been imposed to counteract dumping and had been successful. B) removal of the tariff would actually cause domestic output to increase and price to fall. C) the tariff had been imposed to protect an infant industry and that the industry still needed protection. D) removal of the tariff would cause domestic output to fall even further and the price to fall to consumers.