Which of the following is not included in M1?
a. currency
b. demand deposits
c. savings deposits
d. traveler's checks
c
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The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a 25% real interest rate on their savings. Assume that all interest is paid out as income in the following year. In the year 2010, both families began to save. The Hatfields saved 8% of their income each year; the McCoys saved 10%. In 2010, the Hatfields consumed ________ more than the McCoys; in 2011, the Hatfields consumed ________ than the McCoys.
A. $2,000; about $250 more B. $1,000; about $800 more C. $2,000; about $250 less D. $1,000; about $800 less
Some people think it's unfair that celebrities like Kim Kardashian earn a lot more than people who add so much more value to society, like teachers. What do you think explains this wage differential?
What will be an ideal response?
Use the following general linear demand relation: Qd=680-9P+0.006M-4Pr where M is income and is the price of a related good, R. From this relation it is apparent that the good is:
a. an inferior good b. a substitute for good R c. a normal good d. a complement for good R e. both c and d
When domestic prices rise,
A. business investment rises because interest rates fall. B. exports rise. C. the buying power of cash assets rises. D. interest sensitive consumption falls because interest rates rise.