If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
a. Monetary base to fall.
b. M2 money supply to fall.
c. M2 money multiplier to remain the same.
d. M2 money multiplier to fall.
.C
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Which of the following will shift the supply curve for USB flash drives to the right?
A. an increase in the number of sellers B. an increase in consumers' incomes C. an increase in the cost of resources used to manufacture USB flash drives D. an increase in the number of buyers
A worldwide hops (a flowers used in brewing) shortage made stouts, ales and other specialty microbrews more pricy in 2008. Gayle Goshie, a hops farmer, blames overproduction for hops' previously cheap place on the agricultural market
The glut pushed many hop farmers out business, which gradually helped hop prices recover. Suppose farming hops is a perfectly competitive market. Why would some hop farmers go out of business? A) because the price of hops was below the minimum of average fixed cost B) because the price of hops was lower than the minimum of average variable cost C) because the price of hops was higher than the minimum of average variable cost D) because the price of hops was lower than the minimum of average total cost
In the Keynesian model, an increase in saving serves to decrease consumption spending, causing a multiple contraction in national income
Indicate whether the statement is true or false
Which of the following rates of growth in the money supply is likely to lead to the highest level of inflation in the economy?
a. 1 percent per year b. 2 percent per year c. 3 percent per year d. 4 percent per year