The equation of exchange ________
A) states that the quantity of money multiplied by velocity must equal nominal income in a given year
B) describes a relationship that is true by definition
C) shows that real GDP must equal real money balances times the number of times a dollar turns over in a year
D) all of the above
E) none of the above
D
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According to the new growth theory, ________ is the factor that motivates technological change
A) diminishing returns B) random chance C) decisions about how much human capital to acquire D) profit E) the replication of activities
One of the potential consequences of the public debt is that it may:
A. Make income distribution more equitable B. Increase the debt burden of foreign creditors C. Lead to additional future taxes that reduce economic incentives D. Decrease interest rates and increase investment spending