Currency in circulation is included in
A. Both M1 and M2.
B. M1 only.
C. M2 only.
D. None of the choices are correct.
Answer: A
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Explain what an asset bubble is, when an asset bubble would form, and why the bubble will eventually burst
What will be an ideal response?
Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. The U.S. has a comparative advantage in producing
A) food. B) clothing. C) food and clothing. D) neither good.
As a person's wealth increases we would expect the demand for money to:
A. decrease. B. not change; money demand does not vary with wealth, only with income. C. increase dollar for dollar with wealth. D. increase but at a rate less than dollar for dollar.
Evidence suggests that income inequality in China is
A. increasing relatively rapidly. B. decreasing relatively rapidly. C. increasing relatively slowly. D. decreasing relatively slowly.