The income velocity of money is the absolute number of times, on average, that
A) people purchase goods and services during a year.
B) each monetary unit is spent on final goods and services.
C) each unit of real GDP is produced by business firms.
D) each one-unit increase in the price level occurs.
B
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A government subsidy to the producers of a product:
A. reduces product supply. B. increases product supply. C. reduces product demand. D. increases product demand.
Refer to the information provided in Scenario 36.5 below to answer the question(s) that follow.SCENARIO 36.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.?Average
Monthly Telephone Use per Resident (minutes)Island20162017Achoo4,5005,150Zoink4,8005,225Refer to Scenario 36.5. The total cost of telephone service for residents of Achoo in 2017 is ________ Bugabucks. A. 5,150 B. 25,750 C. 103,000 D. 128,750