If an economy is growing, but experiences no inflation, this means
A. aggregate demand increased, but aggregate supply did not.
B. aggregate supply decreased, but aggregate demand did not.
C. aggregate demand and aggregate supply increased by the same amount.
D. aggregate demand and aggregate supply decreased by the same amount.
Answer: C
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Which of the following items are included in money supply M2 but not M1?
A. Federal Reserve notes B. savings deposits C. coins D. checkable deposits
If the Federal Reserve purchases government securities,
A) banks' reserves will increase. B) the federal funds rate will rise. C) the discount rate will be forced higher. D) None of the above answers is correct because none of the effects occur.
What is consumer surplus? How is it measured?
What will be an ideal response?
Which of the following would most likely increase the demand for peanut butter?
What will be an ideal response?