If financial news broadcasts reported that inflation was likely to rise significantly next year, what would most likely happen to the velocity of circulation?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to inflation.
b
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Which is true about M1?
a. it is the sum of US coins and currency b. it is the sum of US coins and currency, and checking accounts c. it is the sum of US coins and currency, checking and savings accounts d. it is the sum of US coins and currency, checking accounts, savings accounts, and large CDs
As the size of government increases as a share of the economy,
a. the burden of deadweight losses of taxation generally diminishes. b. the rate of return derived from projects undertaken by the government will tend to increase. c. the government generally becomes more heavily involved in unproductive and even counterproductive activities. d. the activities of government are generally limited to protective functions such as public safety , national defense, and provision of a limited set of public goods.