If money is moved from a consumer savings account into a consumer checking account,
A. M1 decreases and M2 increases.
B. M1 increases and M2 remains unchanged.
C. M1 and M2 both decrease.
D. M1 and M2 both increase.
Answer: B
You might also like to view...
Determining “what ought to be” in the economy is considered
a. positive economics. b. normative economics. c. distributive economics. d. mesoeconomics.
The Solow model demonstrates that
A) in the absence of productivity growth, economic growth will turn negative in the long run. B) in the absence of productivity growth, economic growth will reach a steady state of zero per-capita growth in the long run. C) productivity growth must exceed the rate of growth in the population to avoid a steady state in the long run. D) productivity growth will inevitably decline due to diminishing marginal productivity.
Which of the following resources will a producer demand another unit of so long as the additional unit's marginal revenue exceeds its marginal cost?
a. labor b. capital c. natural resources d. entrepreneurial ability e. All of the answers are correct.
What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?
A. Isoquants will become much flatter. B. Isoquants will become much steeper. C. Isoquants will not change but movement will occur upward on the curve. D. Isoquants will become a negatively sloped straight line.