Other things remains same, an increase in velocity means that money spent on goods and services per unit, would be more frequently. (GDP÷Money Supply). Average currency money spent to purchase single piece of commodity and services. Therefore higher the velocity will leads to higher inflation rate.
Demand for money and velocity of money is inversely related. Higher demand for money,lower will be velocity of money. And lower demand for money, Higher would be velocity of money.
Overall, Velocity of money indicates condition of economy. Higher money velocity indicates expansion of economy. While lower money velocity indicates contraction in economy.
Other things remaining same, a right shift in the demand curve will lead to: an increase in the equilibrium price and the equilibrium quantity, © a decrease in the equilibrium price and an increase in the equilibrium quantity. an increase in the equilibrium price and a decrease in the equilibrium quantity. O a decrease in the equilibrium price and the equilibrium quantity,
27. Why does Canadian public policy discourage saving? because, other things the same, taxes increase the return from savings b. because means-tested programs such as Old Age Security provide greater benefits to those who saved because some forms of capital income are not taxed d. because capital gains are taxed heavily c.
27. Why does Canadian public policy discourage saving? a. because, other things the same, taxes increase the return from savings b. because means-tested programs such as Old Age Security provide greater benefits to those who saved because some forms of capital income are not taxed d. because capital gains are taxed heavily c. TITI
Other things the same, an increase in taxes with no change in government purchases makes national saving a. rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for loanable funds shifts left.
Heating Oil prices increase by 46 percent and other things remain the same. As a result, there is O A. More information is needed to determine if the demand for Heating Oil increases or decreases. OB. no change in the quantity of Heating Oil demanded. O C. an increase in the demand for Heating Oil. LOD. a decrease in the quantity of Heating Oil demanded. O E. a decrease in the demand for Heating Oil.
5 percent increase in corporate income tax rates will, other things remaining the same: A. Decrease the average propensity to consume B. Shift the marginal efficiency of investment (MEI) curve to the left C. Shift the MEI curve to the right D. Have no effect on the MEI curve
Other things the same, an increase in the price level induces less spending on a. investment and net exports. b. investment, but not net exports. c. net exports, but not investment. d. neither net exports nor investment.
9. Good X and good Y are substitutes. Holding all other things constant, this means that when the price of good X increases, the: demand for good X will increase. demand for good Y will increase. demand for both good X and good Y will increase. demand for good Y will decrease.
30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for Ioanable funds shifts left.
28. Other things the same, a government budget deficit a. reduces public saving, but not national saving. (b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving. 30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply...