Financial innovations such as direct deposit of paychecks, electronic payment of bills, and automated teller machines (ATMs) have likely ________
A) had minimal effect on M1 and M2
B) reduced the size of M2 relative to M1
C) increased both M1 and M2 relative to GDP
D) caused the growth rates of M1 and M2 to become more stable
E) reduced the size of M1 relative to M2
E
You might also like to view...
In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve, a celebrity's estate
A) will probably not be successful, since there are no laws regulating this kind of use in the United States. B) will most likely be more successful in developing countries than in high-income countries, since property regulations are better enforced in developing countries. C) can rely on U.S. laws that protect intellectual property rights to prevent the unauthorized use of his image. D) will have to be granted a patent declaring the celebrity's image a new product, and this will give the estate protection for 7 years.
Dusty Rags, Inc provides janitorial services to retail stores. Dusty had been charging $10 per hour and selling 400 hours of service per week at that rate. When he raised his price to $15 per hour, his customers cut back to 300 weekly hours of service. Which of the following is true?
a. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand curve for his services must have shifted to the right. b. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be elastic. c. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be inelastic. d. Revenue went from $400 to $300 per week, indicating that demand must be elastic. e. Revenue went from $10 to $15 per week, indicating that demand must be inelastic.
Most markets involve the use of money for transactions because:
a. goods and services can be exchanged more easily with money than without it. b. goods and services cannot be exchanged without money. c. using money requires a double coincidence of wants. d. the transaction costs of using money are very high. e. the value of money remains same across countries over time.
A recession is defined as a period when the
a. real GDP increases less than 3 percent. b. real GDP falls by at least 5 percent in a single quarter. c. nominal GDP declines for two consecutive quarters. d. real GDP falls for two consecutive quarters.