QUESTION 1 The velocity of money is: O how many times on average the typical dollar changes hands in an exchange during the year. O how many times the average dollar gets spent per day. the number of transactions in which a typical dollar is used during a day. O All of these statements are true. QUESTION 2 Natural resources: O are production inputs that come from the earth. O consist only of non-renewable resources. O includes computers and phones. consist only of renewable resources. QUESTION 3 When the economy is experiencing a negative output gap: O there is lots of inflationary pressure due to high demand. O some people and some capital are unemployed. O the economy may be in an expansion. O All of these statements are true. QUESTION 4 The net capital outflow is the: O net flow of funds invested within a country. O net flow of capital goods owned within a country. net flow of funds invested outside of a country. O net flow of capital goods owned outside a country. QUESTION 5 Canadian Gross Domestic Product includes: O goods produced by Canadian firms on foreign soil. O goods produced by foreign firms on Canadian soil. goods produced by foreign firms on foreign soil. O None of these statements is true. QUESTION 6 The quantity equation states: O M * P = Y *V. O M * V = P xY O P * V =M *Y. O None of these statements is true