Recall the Application About the Best Speed at Which to Sail

question 184

Multiple Choice

Recall the Application about the best speed at which to sail an ocean cargo ship to answer the following question(s) .
-Based on the Application,the marginal cost of sailing a ship faster is

• A) more cargo delivered per year.
• B) more fuel cost incurred.
• C) less fuel costs incurred.
• D) less cargo delivered per year.

---

Definitions:

Equation of Exchange

A monetary theory equation that states the money supply multiplied by the velocity of money equals the price level times the quantity of goods and services sold (MV = PQ).

Interest Rate

The part of a loan that incurs interest fees for the borrower, customarily indicated as an annual percentage of the unpaid loan.

Discretionary Policies

Economic strategies, involving government spending and taxation, that are implemented at the discretion of the government to manage economic fluctuations.

Monetarist Economists

Economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.