Explain why the U.S. money supply grew so rapidly in the 1970s
There are two reasons why our money supply grew so rapidly in the 1970s. First, money market mutual
funds and money market deposit accounts were developed. These assets became very popular because they
performed both as an investment and as reasonably accessible money. Second, the sluggish stock market
performance of the 1970s made high-interest-yielding M2 money forms look particularly good, so people
shifted out of the stock market into M2 money.
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Who tends to lose from labor migration?
A. The firms in the country of origin B. The migrant workers C. The firms in the destination country D. The workers in the country of origin who did not migrate
According to the income approach to measuring GDP, the largest income category is
A) profits. B) rent. C) wages. D) consumption expenditure. E) interest.
Answer the following statements true (T) or false (F)
1) If your firm has a random demand, producing at the level that maximizes your expected profit will earn the same profit as the profit-maximizing production level with a known demand. 2) If a firm's demand is random, the firm's price and profit are also random. 3) If a perfectly competitive firm has a random demand and known marginal cost, producing at a level that sets expected price equal to marginal cost minimizes the reduction in expected profit. 4) If a firm's demand is known, but has random costs, it cannot maximize its actual profit. 5) When both demand and cost are random, firms cannot maximize expected profit.
When the demand and supply of a good both shift in the same direction and amount: a. Price will change in the same direction as the shifts in supply and demand
b. Price will change in the opposite same direction as the shifts in supply and demand. change in price and an increase in quantity exchanged. c. Quantity exchanged will change in the same direction as that of the shifts in supply and demand. d. Quantity exchanged will change in the opposite direction from that of the shifts in supply and demand