When her $1,000 time deposit expires, Suneeta decides not to renew the time deposit and opts to cash out. As a result of her transaction
A) M1 and M2 increase.
B) M1 increases and M2 decreases.
C) M1 is unaffected and M2 decreases.
D) M1 increases and M2 is unaffected.
Ans: D) M1 increases and M2 is unaffected.
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Cobb-Douglas production function have decreasing returns to scale.
Answer the following statement true (T) or false (F)
Which of the following statements is TRUE?
A) There is a direct relationship between investment and the interest rate. B) There is an inverse relationship between investment and the interest rate. C) There is no relationship between investment and the interest rate. D) Investment is always less than savings.
The economy is in equilibrium, TP = TE. Then, net exports fall. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of good and services they produce
A) TE; upward; rise; increase B) TP; rightward; rise; decrease C) TE; downward; rise; decrease D) TE; downward; rise; increase E) none of the above
Unemployment is not caused by
A. drops in actual GDP. B. persons looking for more suitable jobs. C. inflation. D. technological disruption.