Why are check able deposits counted as part of a nation’s money supply?
What will be an ideal response?
Because checks can be written against such deposits and used to purchase goods and services. Therefore, in most respects they serve the same function as currency or coin.
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In broad terms the difference between microeconomics and macroeconomics is that
A) they use different sets of tools and ideas. B) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. C) macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. D) microeconomics studies the effects of government taxes on the national unemployment rate.
Common knowledge in game theory
A) is information known by all players. B) is required for static games. C) does not impact the outcome of the game, since everyone has the information. D) Both A and B.
When a household's disposable income falls to zero, what do we expect will happen?
A) The household's consumption spending also falls to zero. B) The household will maintain a positive level of saving. C) The household will maintain its previous level of consumption. D) Consumption will fall to the level of autonomous consumption.
After John discovered he had a serious illness, he immediately purchased health insurance without disclosing his illness to the insurance company. This is an example of adverse selection
a. True b. False Indicate whether the statement is true or false