Author Question: The capital stock of an economy increases: a. whenever money in circulation is decreased. b. ... (Read 52 times)

Anajune7 · **on:** Jun 30, 2018

The capital stock of an economy increases:
a. whenever money in circulation is decreased.
b. whenever gross investment is positive.
c. whenever gross investment is negative.
d. only if net investment is positive.
e. only if gross investment is zero.

Question 2

If the money supply in an economy equals 1,000 and nominal GDP equals 3,000 . then according to the equation of exchange, velocity of money:
a. equals 1/3.
b. equals 3.
c. equals 3 million.
d. cannot be determined since we do not know anything about prices.
e. cannot be determined since we do not know anything about real GDP.