Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary baseto rise.
b. M2 money supply to rise.
c. M2 money supply to fall.
d. Monetary base to remain the same.
.D
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In a typical year, new small firms create ________ jobs
A) 250,000 B) 1.1 million C) 1.8 million D) 3.3 million
Under autarky, consumer surplus is represented by the area
A) above the supply curve and below the equilibrium price. B) above the demand curve and below the supply curve. C) below the demand curve and above the equilibrium price. D) above the supply curve and below the demand curve.
When a corporation issues a bond, it is
A. Lending money to the owners of the corporation. B. Issuing dividends to shareholders. C. Borrowing funds from the initial buyer of the bond. D. Making an initial public offering.
For a fixed money supply, a higher level of real balances implies
A. a higher price level. B. a lower price level. C. higher velocity of money. D. lower velocity of money.