During the three years following the financial crisis of 2008,
a. the monetary base more than doubled and the M1 money supply increased even more rapidly.
b. the monetary base more than doubled, but the M1 money supply increased much less rapidly.
c. the monetary base fell by almost 50 percent, but the M1 money supply continued to grow at a steady rate.
d. the monetary base fell by almost 50 percent, causing a sharp reduction in the M1 money supply.
B
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Hong Kong is an example of an economy that
A) does not experience economic growth because it is not a democracy. B) experiences economic growth in spite of the fact that is lacks democratic freedom. C) grows more slowly than other Asian countries because property rights are not valued. D) needs to promote investment so that economic growth can occur. E) lacks economic freedom and therefore experiences the slowest economic growth of all developed economies.
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price lower than the original equilibrium b. A market equilibrium price higher than the short run price c. Some firms exiting the market d. All of the above
The money supply known as M2:
a. includes large denomination time deposits. b. excludes interest-earning checking accounts in savings and loans. c. does not include money market mutual accounts. d. includes savings accounts and small denomination time deposits. e. includes large denomination repurchase agreements.
Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following except:
A. a positive demand shock B. a positive inflation shock C. an increase in govt spending D. an increase in the inflation rate