What are the major components of M1? What are the major components of M2? Describe each component
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The principal components of M1 are currency, transaction accounts, and traveler's checks. Currency includes coins and Federal Reserve notes (i.e., paper money). Transaction accounts are those against which checks may be drawn. Traveler's checks are a substitute for currency that can be replaced if lost or stolen. The principal components of M2 are M1, savings account deposits including money market deposit accounts (MMDAs), small time deposits, and money market mutual funds (MMMFs). Small time deposits are certificates of deposit (CDs) of less than $100,000 denomination. MMMFs invest their shareholders' funds in short-term securities, pay market-based interest rates, and allow holders to write a limited number of checks. MMDAs are like MMMFs, except they are offered by banks or thrift institutions such as savings and loan associations.
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Explain how government deficits fell yet current account surpluses remained the same in the EU prior to adopting the euro. Also explain this in the context of the "twin deficits" theory
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Conflicts of interest arising from management advisory services brought down ________ in 2002
A) Enron B) WorldComm C) Arthur Andersen D) Global Crossing
Price elasticity of demand along a linear, downward-sloping demand curve decreases as price falls
a. True b. False Indicate whether the statement is true or false
If capital and labor are perfect substitutes in a production function, the isoquants for this function will be
A. convex from above. B. concave from above. C. a straight line. D. any one of these depending on the particular combination of labor and capital employed.