Which of the following is not included in either M1 or M2?
a. U.S. Treasury bills
b. small time deposits
c. demand deposits
d. money market mutual funds
a
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If the value of the price elasticity of demand is -0.2, this means that a
a. 20 percent decrease in price causes a 1 percent increase in quantity demanded b. 0.2 percent decrease in price causes a 1 percent increase in quantity demanded c. 5 percent decrease in price causes a 1 percent increase in quantity demanded d. 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded e. 100 percent decrease in price causes a 200 percent increase in quantity demanded
Bill can cook dinner in 45 minutes and mow the lawn in 1.5 hours. Eileen can cook dinner in 1.5 hours and mow the lawn in 2 hours. Bill's opportunity cost of mowing the lawn is
a. 1/2 of a dinner b. 2 dinners c. 3/4 of a dinner d. 1-1/3 dinners e. 2-2/3 dinners
From the list? below, match the letter of the outcome each of the following events produces upon the LRAS curve.
A. Shifts to right B. Shifts to left C. Movement up along D. Movement down along Last year, businesses invested in new capital equipment, so this year the nation's capital stock is higher than it was last year. There has been an 8 percent increase in the quantity of money in circulation that has shifted the AD curve A hurricane of unprecedented strength has damaged oil rigs, factories, and ports all along the nation's coast Inflation has occurred during the past year as a result of rightward shifts in the AD curve
A bank's checkable deposits shrinks from $40 million to $33 million. What happens to its required reserves if the required reserve ratio is 3%?
A. They fall by about $1.2 million B. They fall by about $10 million C. They fall by about $7 million D. They fall by about $0.2 million