The velocity of money tends to increase when people have lower money balances. Which of the following would cause an increase in the velocity of money? Check all that apply. a. An increase in the rate of inflation b. A long period of low inflation V c. An increase in the frequency with which workers are paid d. An increase in the availability of interest-bearing checking accounts

Answers

Answer 1

An increase in the rate of inflation, an increase in the frequency with which workers are paid, and an increase in the availability of interest-bearing checking accounts will cause an increase in the velocity of money.

The velocity of money is defined as the number of times a unit of money is used to purchase goods and services in a given period. It is calculated as the ratio of nominal GDP to the money supply. According to the quantity theory of money, velocity is proportional to the ratio of nominal GDP to the money supply. The velocity of money tends to increase when people have lower money balances and tends to decrease when people have higher money balances. This is because as people have less money, they tend to spend more of it in order to meet their basic needs.

The following factors can increase the velocity of money:

An increase in the rate of inflation: Inflation erodes the value of money over time. As a result, people are motivated to spend their money more quickly in order to avoid losses due to inflation. This increased spending leads to an increase in the velocity of money.

A long period of low inflation: A long period of low inflation can create an environment in which people feel more secure about their financial situation. This increased sense of security can lead people to spend more freely, which leads to an increase in the velocity of money.

An increase in the frequency with which workers are paid: When workers are paid more frequently, they tend to spend more of their money. This increased spending leads to an increase in the velocity of money.

An increase in the availability of interest-bearing checking accounts: When interest-bearing checking accounts are available, people are more likely to deposit their money in them. This increased availability of interest-bearing checking accounts leads to an increase in the velocity of money.

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Related Questions

What is the tolerance range of an organism?

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The tolerance range of an organism refers to the range of environmental conditions in which it can survive and reproduce.

These environmental conditions can include factors such as temperature, moisture, pH, light, nutrients, and other physical and chemical variables.

Each organism has its unique tolerance range, which can vary depending on factors such as genetic makeup, developmental stage, and past environmental experiences. Some organisms have very narrow tolerance ranges and can only survive in very specific environmental conditions, while others have broad tolerance ranges and can survive in a wide variety of conditions.

The tolerance range of an organism refers to the range of environmental conditions in which it can survive and reproduce.

Understanding an organism's tolerance range is important for predicting how it will respond to changes in its environment, such as those caused by climate change, pollution, or habitat destruction. By studying an organism's tolerance range, scientists can gain insights into how it might adapt to changing environmental conditions or how it might be affected by human activities.

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davon watched his father recoil from a snake in fear. now he is afraid of snakes. this apparent acquisition of fear of snakes is an example of: group of answer choices modeling. response discrimination. escape response. stimulus generalization.

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The final answer are acquisition of fear of snakes that is exhibited by Davon after watching his father recoil from a snake in fear is an example of stimulus generalization. Stimulus generalization is the process by which stimuli similar to the original conditioned stimulus trigger the same conditioned response.

When an organism generalizes a learned response to a new stimulus that is similar to the original, it is known as stimulus generalization. For example, a rat that has been taught to fear a particular tone might also fear other, somewhat different tones.

In this case, Davon witnessed his father's fear of a snake and generalizes his father's fear of snakes to all snakes as a result of the similar characteristics they share. When a person acquires a phobia of an object or situation, it's often as a result of stimulus generalization.

When a person with arachnophobia encounters a spider, for example, their fear response is triggered. The fear response is then generalized to any object or situation that resembles a spider in some way. This may occur when the person comes into contact with cobwebs, for example.

The correct option is stimulus generalization.

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Assume that the full-empinyment level of GDP is $10,000. The current level of GDP is $8,000. Answer the following questions a. Does this economy have any cyclical unemployment? Explain. b. If the MPC is.8, what minimum decrease in taxes is needed to reach full employment? c. If the MPC is.8, what minimum increase in government spending is needed to reach full employment? d. Are your answers to questions b and c numerically identical? If not, explain why? e. Could an equal increase in government spending and in taxes be used to reach full employment GDP? If so, what amount?

Answers

The full employment level of GDP has various aspects such as cyclical unemployment, full employment, etc.

a. Yes, this economy has cyclical unemployment.

b. The minimum decrease of $2,500 in taxes will lead to an increase of $2,000 in GDP, which is enough to reach full employment.

c. The increase of $2,500 in government spending will lead to an increase of $2,000 in GDP, which is enough to reach full employment.

d. No, the answers to questions b and c are not numerically identical.

e. Yes, an equal increase in government spending and taxes could be used to reach full employment GDP.

Explanation:

a. Cyclical unemployment occurs when the level of GDP is lower than the full employment level, as it is in this case.

The full employment level of GDP is $10,000 and the current level of GDP is $8,000, meaning that the economy has a shortfall of $2,000. This results in a shortage of demand for labor, leading to a rise in cyclical unemployment.

b. The minimum decrease in taxes necessary to reach full employment GDP is $2,500. This is because the MPC is 0.8, meaning that a decrease in taxes of $1 will lead to an increase in GDP of $0.80.

c. The minimum increase in government spending necessary to reach full employment GDP is $2,500. This is because the MPC is 0.8, meaning that an increase in government spending of $1 will lead to an increase in GDP of $0.80.

d. This is because the magnitude of the decrease in taxes and the increase in government spending needed to reach full employment will depend on the level of the MPC.

In this case, the MPC is 0.8, so the minimum decrease in taxes and the minimum increase in government spending needed to reach full employment are both $2,500.

e. The amount of the increase would need to be $2,500, as this is the amount needed to offset the current GDP shortfall of $2,000.

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Learning that does not reveal itself until it is needed is called a) observational learning. b) latent learning

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Latent learning is knowledge that does not become apparent until it is required. The best choice is b.

Latent learning: What is it?

The subconscious retention of knowledge without reinforcement or incentive is known as latent learning. Latent learning occurs when memory of the knowledge is not yet fully formed, and behaviour changes only when there is adequate incentive.

When something can influence future behaviour without being directly experienced, it is said to have latent learning. Several things can be learned through observation.

Even when no one is praising them for doing that behaviour, a human sees it and then repeats it at a later time.

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Ralph Waldo Emerson predicted what the future of the United States would look like if the country tried to take over part of Mexico. What quotes resonates with his ideas?

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"All America is taking its rise out of Mexico," Emerson wrote.

Ralph Waldo Emerson, one of the greatest American poets, predicted that the future of the United States would be bleak if the country attempted to take over a part of Mexico."All Americans are thus assimilating Mexico with themselves, and becoming Mexicanized by it."This quote resonates with Emerson's ideas because he believed that the United States' aggressive expansionist policies would eventually lead to its downfall. He believed that the country's quest for the territorial acquisition was misguided and would ultimately cause more harm than good. Emerson was critical of the United States imperial ambitions and believed that the country should focus on cultivating a culture of self-reliance and individualism rather than seeking to dominate other nations.

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the concept of face refers to group of answer choices the public self image that every member of society wants to claim for himself or herself a psychological image that can be granted and lost and fought for and presented as a gift the projected image of one's self in a relational situation all of these

Answers

The concept of face refers to the projected image of one's self in a relational situation. Face is a fundamental aspect of social interaction, particularly in cultures that emphasize social harmony and collective values. Hence option c. is correct.

What is the concept of face?

The projected image of one's self in a relational situation refers to the concept of face. A public self-image that every member of society wants to claim for himself or herself is another option.

People seek to present themselves in a favourable light in social settings, and this image is created by how people react to them. This favourable image, or face, can be lost, given, and fought for by individuals.

Face is an important aspect of social life in many cultures, particularly those that emphasize social harmony and collective values. Hence option c. is correct.

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