If a constant-growth-rate-of-money policy is to achieve constant growth of nominal GDP, velocity
A) does not matter since the money supply is growing steadily.
B) must grow at a steady and predictable rate.
C) must be constant.
D) must shrink over time at the same rate as money grows.
B
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The ________ claims that the way societies have organized themselves and shaped the incentives of individuals and businesses are at the root of the differences in prosperity across the world
A) location hypothesis B) geography hypothesis C) institutions hypothesis D) culture hypothesis
When Economist Truman Bewley surveyed managers about their employment decisions during a recession, he found that:
A. they are indifferent between using layoffs and using wage cuts during a recession. B. they feel guiltier about reducing workers' wages than they do about firing workers. C. it is easier to reduce wages slightly for all workers than to fire some workers. D. it is easier to fire some workers and leave the wages of the other workers unchanged.