In Figure 1 below if the economy were at Y3 then we would expect there to be:
A. an increase in production since PAE < actual output.
B. an increase in production since PAE > actual output.
C. no change in production since PAE = actual output.
D. a decrease in production since PAE < actual output.
D. a decrease in production since PAE < actual output.
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Which of the following compose the M2 money supply?
a. Currency only. b. Currency, checkable deposits, and traveler's checks. c. M1 plus large denomination time deposits and Eurodollar deposits. d. M1 plus savings deposits and small-denomination time deposits.
The Federal Reserve
a. prints money for use by individuals during transactions. b. is a nation's monetary authority, responsible for controlling the money supply. c. issues government debt. d. makes loans and takes deposits from individuals. e. collects taxes from corporations only while the Treasury Department collects personal income and Social Security taxes.
An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.9, result in an increase in national income by
a. $1,000 b. $9,000 c. $900 d. $190 e. inadequate information is given
The goal of the consumer is to
a. maximize utility. b. minimize expenses. c. spend more income in the current time period than in the future. d. All of the above are the goals of the consumer.