Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to fall.
b. M2 money supply to rise.
c. M2 money multiplier to remain the same.
d. M2 money supply to fall.
.C
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The supply curve of a good or service is the same as
A) the demand curve. B) the marginal benefit curve. C) the marginal cost curve. D) the total surplus curve. E) None of the above answers is correct.
If the marginal propensity to consume = 0.75, then:
a. the marginal propensity to save = 0.75. b. the marginal propensity to save = 1.33. c. the marginal propensity to save = 0.20. d. the marginal propensity to save = 0.25. e. since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.
The primary value of data for real GDP lies in its ability to
a. reflect the welfare of a society relative to a previous period. b. compare a nation's productivity during two periods widely separated in time. c. indicate short-term changes in the output rate of a nation. d. indicate how hard the people of a nation are working.
Supply-side economics concentrates on the benefits of reducing marginal tax rates. Describe three ways that high marginal tax rates are likely to retard output growth