Velocity can be computed with the formula
a. (Annual spending)/(Money supply).
b. (Annual income)/(Annual spending).
c. (Average income)/(Average spending).
d. (Money supply)/(Average income).
a
Economics
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Isabel receives a check for $7,000 from Kermit and deposits it in her bank. Suppose that the reserve ratio is 10 percent. As a result of this transaction the money supply will
A) decrease by $63,000 and then increase by $70,000. B) increase by $70,000. C) decrease by $70,000 and then increase by $63,000. D) not change.
Economics
Discouraged workers are discouraged because
A) their employers continue to underpay them. B) they are working part-time, but they want full-time work. C) they don't have jobs and are pessimistic about their chances of finding a suitable job. D) their employers are too demanding.
Economics