Suppose Bob withdraws money from his checking account and deposits it into his savings account. What happens to M2?
A. It decreases.
B. It increases.
C. It stays the same.
D. The effect is unknown.
Answer: C
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Bauxite is used for making aluminum. Which of the following will happen if bauxite prices fall, assuming all else equal?
A) The labor demand curve of aluminum manufacturers will shift to the right. B) The labor demand curve of aluminum manufacturers will shift to the left. C) Aluminum manufacturers will move to a higher point along their labor demand curves. D) Aluminum manufacturers will move to a lower point along their labor demand curves.
Briefly explain how command-and-control regulation works
What direction of change in velocity could explain the price level increasing by a smaller percentage than the money supply? What would this change in velocity imply about the frequency with which money changes hands?
If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that:
A. it is colluding with its rivals to maximize joint profits. B. its demand curve is kinked. C. it is selling a standardized product. D. it is selling a differentiated product.