The components of M2 that are not also in M1:
A. sum to an amount that is smaller than the sum of the components of M1.
B. are usable for making payments, but at a greater cost or inconvenience than currency or checks.
C. are not usable for making payments.
D. pay lower rates of interest than do the components of M1.
Answer: B
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Assume equilibrium real GDP per year is equal to full-employment real GDP. Which of the following will cause a recessionary gap?
A) a discovery of a new raw material B) a reduction in aggregate demand C) a temporary reduction in the price of oil D) an increase in aggregate demand
Privatization is a process of
a. breaking up large government companies into small government companies b. selling government companies to private individuals c. consolidating small government companies into larger ones d. government buying private companies e. none of the above
Which of the following is a common mistake managers make?
A. Maximizing the value of the firm instead of maximizing the firm's profits. B. Increasing the rate of production in order to reduce unit costs of production. C. Treating implicit opportunity costs as part of the total costs of using resources. D. Using marginal analysis to make output decisions. E. all of the above.
The Norwegian economy can be characterized by Equation 24.3.EQUATION 24.3:C = 100 + 0.8Yd G = 500T = 200I = 200Refer to Equation 24.3. At the equilibrium level of output in Norway, saving equals
A. 1,660. B. 850. C. 630. D. 500.