Other things being equal, if you took money out of your savings deposit account and put it in a demand deposit account:
a. M1 would increase and M2 would increase.
b. M1 would increase but M2 would not change.
c. M1 would decrease and M2 would decrease.
d. M1 would fall but M2 would not change.
b
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Electricity accounts for almost 20% of the cost of making steel. A 10% increase in electricity prices results in steel firms decreasing production and thereby demanding 5% less electricity
Over many years, technological innovations can change the way steel firms make steel and reduce the industry's energy requirements. This suggests that the steel industry's short-run elasticity of demand for electricity is probably A) less than one in absolute terms in the short run. B) less than its long-run elasticity of demand for electricity. C) Both A and B above. D) Neither A nor B above.
Railroads, automobiles, television, computers, and genetic engineering are all examples of new industries that are believed by many economists to have triggered
a. innovation cycles b. all internal cycles c. all external cycles d. short-run cycles e. multiple-investment cycles
In long-run equilibrium, the perfectly competitive firm sets its price equal to which of the following?
a. Short-run marginal cost. b. Long-run average cost. c. All of the answers are correct. d. Short-run average total cost.
Many book publishers use cost-plus pricing to establish prices for some of their books
Would you expect a publishing company to use a strict cost-plus pricing system for all its books? How might you determine if a publishing company actually does use cost-plus pricing for all its books?