With the invention of ATM machines, the public now holds less currency. As a result, we would expect to have seen
a. both the M1 and the M2 multipliers to increase over time.
b. the M1 multiplier to increase while the M2 multiplier to decrease over time.
c. the M1 multiplier to decrease while the M2 multiplier to increase over time.
d. None of the above
D
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Under a market system, the people with information about buyers' desires, production technology and resources make the decisions
Indicate whether the statement is true or false
Most of the disagreement among economists involves normative debates
a. True b. False
Michael is a college student. He can either buy a textbook for $100 or save up for a road trip he wants to take during the summer. This illustrates the principle that
a. trade can make everyone better off. b. people face trade-offs. c. rational people think at the margin. d. people respond to incentives.
Considering a call option, if the price of the underlying asset decreases:
A. the intrinsic value of the option decreases if it is above zero. B. the value of the option increases. C. the strike price decreases. D. the intrinsic value of the option increases if it is above zero.