Which of the following statements is false?
A) Currency is money, but money is more than just currency.
B) M1 is a component of M2.
C) Retail money market mutual funds are part of M2, but institutional money market mutual funds are not.
D) Credit cards are money since they are widely accepted for purposes of exchange.
E) Money reduces the transaction costs of making exchanges.
D
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If Jamal successfully and completely internalizes a negative externality, it follows that
A. transaction costs are zero. B. his marginal private costs are equal to marginal social costs. C. information is asymmetric. D. information is symmetric. E. none of the above
Supply side inflation can be caused by
A) a continual increase in aggregate supply while aggregate demand remains unchanged. B) a continual decrease in aggregate supply while aggregate demand remains unchanged. C) a continual decrease in aggregate supply while aggregate demand has significant decreases. D) a continual increase in aggregate demand while aggregate supply remains unchanged.
Crazy Cryptography is a software corporation that has 1,000 shares of stock in existence. The corporation has just surprised the market by announcing a new software package that will increase the company's after-tax profit by $500,000 each year, forever. If the interest rate is 8 percent (0.08) per year, by how much will the value of a single share of stock increase?
a. $500.00 b. $6,250.00 c. $5,000.00 d. $10,000.000 e. $8,333.33
If price equals average total cost at the profit-maximizing output level, then in the short run,
a. profit is positive b. profit is negative c. the firm will go out of business d. the firm will earn zero profit e. the firm's supply curve is horizontal