Velocity can be defined as:
a. the turnover rate of money
b. the speed at which economic activity takes place.
c. the speed at which multiplier effect takes place.
d. the speed at which tax cuts are spent.
Question 2
Which of the following stands true for factors that affect changes in productivity across countries and over time?
a. It is more difficult to measure changes in the quality of goods than changes in the quality of services.
b. As energy prices go up, energy-efficient capital goods become obsolete.
c. It is believed that productivity grows more slowly in manufacturing industries than in services, because of the less labor-intensive nature of manufacturing industries.
d. The key to efficient production is the allocation of resources to their best use.
e. The greater the productivity, the more efficient the allocation of resources, and the less developed a country's financial market would be.
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