According to the quantity theory of money, a decision on the part of all business firms currently paying employees on a monthly basis to begin paying on a weekly basis would be expected to
A. increase velocity and increase nominal GDP.
B. increase velocity and decrease nominal GDP.
C. decrease velocity and increase nominal GDP.
D. decrease velocity and decrease nominal GDP.
Answer: A
Economics
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In a fractional-reserve banking system, a bank
a) does not make loans. b) does not accept deposits. c) keeps only a fraction of its deposits in reserve. d) None of the above is correct.
Economics
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Economics