Are outstanding credit card balances counted as part of the money supply?
a. No; credit card balances reflect funds that have been borrowed. Unlike money, they cannot be used as a means of payment.
b. Yes; they are used to purchase things and therefore they are included in the money supply figures.
c. They are included in the M1 money supply, but not the M2 figures.
d. They are included in the M2 money supply, but not the M1 figures.
A
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All else equal, if oil prices decrease, annual oil consumption will ________ and the years it will take to deplete the stock of oil will most likely ________
A) decrease; increase. B) decrease; decrease C) increase; increase D) increase; decrease
What might the World Bank actually be a less efficient means of financial intermediatinon than private international banks?
What will be an ideal response?
Gerald spends his weekly income on gin and cocktail olives. The price of gin has risen from $7 to $9 per bottle, the price of cocktail olives has fallen from $6 to $5 per jar, and Gerald's income has stayed fixed at $46 per week. Since the price changes, Gerald has been buying 4 bottles of gin and 2 jars of cocktail olives per week. At the original prices, 4 bottles of gin and 2 jars of cocktail
olives would have a. exactly exhausted his income. b. cost more than his income. c. cost less than his income. d. could have maximized his satisfaction given his budget constraint.
The supply curve illustrates that firms:
A. increase the quantity supplied of a good when its price rises. B. decrease the quantity supplied of a good when input prices rise. C. decrease the supply of a good when its price rises. D. increase the supply of a good when its price rises.