Suppose That C = $900,I = $300,G = $200,NX =

question 129

Multiple Choice

Suppose that C = $900,I = $300,G = $200,NX = $100,and that the money supply is equal to $300.Based upon these assumptions,velocity is equal to ________________.If consumption and velocity both rise beyond their initial levels,then it follows that another component of spending ___________ necessarily fall.

• A) 5; must
• B) 5; does not
• C) 3; must
• D) 3; does not

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Definitions:

U.S. Constitution

The foundational legal document of the United States, establishing the framework of the federal government and the rights of individuals.

Bioprospecting

Occurs when companies search in poor or indigenous areas for new biological entities that they can exploit.

Biopiracy

The practice of commercially exploiting naturally occurring genetic material or biochemical, usually by obtaining patents that restrict its future use, while failing to pay fair compensation to the community from which it originates.

Biocolonialism

Occurs when Western companies exploit indigenous areas and express a dominant–submissive relationship.