Teddy transfers $175 from his money market fund to his checking account. This transaction will
A. decrease M1 and increase M2.
B. increase M1, but leave M2 unchanged.
C. decrease both M1 and M2.
D. decrease M2 and increase M1.
Answer: B
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If an increase in income leads to a decrease in the demand for salami, then salami is
A) a necessity. B) a neutral good. C) a normal good. D) an inferior good.
Use the above figure. When it maximizes its economic profits, the monopolistically competitive firm depicted in the figure
A) is earning an economic profit. B) is earning an accounting profit. C) is earning an economic loss. D) must increase output to reduce the ATC.
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Baseball players who switch teams are more likely to suffer from injuries because the player's ________ team has superior information concerning the health of the player and, if they believe the player will be prone to injury in the future, they ________ be willing to outbid another team.
A. new; will not B. old; will not C. new; will D. old; will
Expansionary fiscal policy tends to:
A. lower U.S. income, reduce U.S. imports, and lower the trade deficit. B. raise U.S. income, increase U.S. imports, and lower the trade deficit. C. lower U.S. income, reduce U.S. imports, and increase the trade deficit. D. raise U.S. income, increase U.S. imports, and increase the trade deficit.