All of the following are true about the basic money supply except:
A. It includes credit card balances.
B. It includes currency held by the public.
C. It includes money kept in transactions accounts.
D. It is known as M1.
A. It includes credit card balances.
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If the price of the good measured on the horizontal axis falls, a consumer's budget line
A) becomes flatter. B) becomes steeper. C) shifts rightward and its slope does not change. D) shifts leftward and its slope does not change.
Investors value liquidity in an asset because
A) liquid assets tend to have high rates of return. B) liquid assets incur lower selling costs. C) liquid assets incur lower tax liabilities. D) whereas liquid assets have high information costs, their low risk offsets this.
The determinants of labor demand include:
A. culture and other opportunities. B. supply of other factors and output prices. C. culture and technology. D. culture and population.
If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000 . then:
a. the demand for Pete's muffins in this range is price elastic. b. the demand for Pete's muffins in this range is price inelastic. c. the demand for Pete's muffins in this range is unit elastic. d. the percentage change in quantity demanded must exceed the percentage change in product price. e. this is impossible since this would violate the law of demand.