Distinguish M1 from M2.
What will be an ideal response?
M2 is a broader definition of money that includes assets that are less likely to be used in economic exchanges. M2 includes all the assets in M1 but also includes savings deposits, money market mutual funds and time deposits.
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Holding everything else constant, if total factor productivity ________ or if the labor force growth rate ________ the debt-to-GDP ratio will increase
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Vertical contracts between manufacturers and retailers often aim to
a. Prevent the retailers from defeating upstream price discrimination through arbitrage b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above
A Congressional attempt to reduce deficit spending within a specific time frame was
a. the Kemp-Roth Act b. the Gramm-Rudman-Hollings Act c. the Tax Reform Act of 1986 d. the Humphrey-Hawkins Act of 1978 e. the Helms-Burton Act of 1995
Supply will become more elastic when
A. there are good substitutes for the goods. B. a time period lengthens. C. the good is important to consumers. D. the time period shortens.