Money market mutual funds
A) are included in M2 but not M1.
B) are included in M1 but not M2.
C) are included in M1 and M2.
D) are the largest part of the monetary base.
E) None of the above is correct.
A
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The laws of supply and demand force prices to an equilibrium.
Answer the following statement true (T) or false (F)
Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at $2,000 billion, then which one of the following actions will bring it to a full-employment equilibrium of $1,500 billion?
a. $500 billion spending cut. b. $500 billion spending increase. c. $125 billion spending cut. d. $125 billion spending increase. e. $2,000 billion spending cut.
The downward-sloping portion of the marginal cost curve is the only portion that matters in production
Indicate whether the statement is true or false
Externalities arise when: a. the benefits of a transaction between producers and consumers are enjoyed by only the consumers. b. the benefits of a transaction between producers and consumers are enjoyed by only the producers. c. a transaction negatively impacts people who are not directly involved in the transaction
d. a transaction occurs without the government's approval.