Which of the following is included in M2, but not included in M1?
A. demand deposits
B. currency held outside banks
C. travelers checks
D. savings accounts
Answer: D
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You are hired by the Bureau of Economic Analogies (BEA) as an economic consultant. The chairperson of the BEA tells you that he believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. He wants to know what policy to pursue to increase aggregate output by $700 billion. The best estimate he has for the MPC is 0.8. Which of the following policies should you recommend?
A. increase government spending by $350 billion and reduce taxes by $700 billion B. reduce government spending by $350 billion and reduce taxes by $250 billion C. increase government spending by $700 billion and taxes by $600 billion D. increase both government spending and taxes by $700 billion
Refer to the information provided in Figure 6.14 below to answer the question(s) that follow.
Figure 6.14Refer to Figure 6.14. The slope of the indifference curve is the ratio of the
A. total utility of ice cream cones to the total utility of ice cream sandwiches. B. marginal utility of ice cream sandwiches to the marginal utility of ice cream cones. C. total utility of ice cream sandwiches to the total utility of ice cream cones. D. marginal utility of ice cream cones to the marginal utility of ice cream sandwiches.
After Hurricane Andrew hit Florida and Louisiana, consumers expressed outrage at the high prices being charged for chainsaws, generators, and bottled water. If governments followed the consumers’ demands and imposed price ceilings in these markets, what is the likely result?
What will be an ideal response?
The central bank is the only authorized institution with the power to issue currency
Indicate whether the statement is true or false