When the velocity of circulation equals 4 in 2010, this fact means that
A) consumers held four dollars in wealth for each dollar they spent in 2010.
B) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2010.
C) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2010.
D) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.
B
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When a foreign firm sells its exports at a lower price than its cost of production, the firm is
A) imposing an economies of scale cost. B) dumping. C) avoiding a tariff. D) competing in an infant industry.
Which of the following is evidence of a shortage of chocolate?
A) Firms lower the price of chocolate. B) The price of chocolate is raised in order to increase sales. C) The equilibrium price of chocolate falls due to a decrease in demand. D) The quantity of chocolate demanded is greater than the quantity supplied.