Which of the following statements is true of the official classification of money?
a. Currency is a component of M1, not M2
b. Traveler's checks is a component of M1, not M2.
c. M2 includes demand deposits as well as saving accounts.
d. M2 excludes demand deposits and saving accounts.
c
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Using the concept of income and substitution effects, explain how you might react to each of the following:
(a) You currently work 20 hours a week at $10 per hour and your employer tells you he must reduce your wage to $8 per hour. (b) The price of pizza doubles and the price of hamburgers remains constant.
An unexpected rise in the Purchasing Managers' Index should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
The economic way of thinking will help you
A) make decisions in financing your home. B) decide whether the U.S. government should encourage or discourage immigration. C) make better decisions concerning your education. D) all of the above
Which statement is true?
A. it is easier to attain full employment than full production. B. employment discrimination no longer exists in the U.S. labor market. C. The United States is usually operating on the production possibilities frontier. D. None of these statements are true.