Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same.
b. Demand for real goods and services to fall and M2 money supply to fall.
c. Demand for real goods and services to remain the same and M2 money multiplier to fall.
d. Demand for real goods and services to remain the same and M2 money supply to remain the same.
.A
You might also like to view...
The stages of development in a company's export expansion are tied to company size.
a. true b. false
Which of the following profit functions exhibits a Cobb-Douglas production function?
A. ? = P × min(2L, 5K) ? 20L ? 35K B. ? = P × (3K + 4L) ? 20L ? 35K C. ? = P × K0.75L0.50 ? 20L ? 35K D. ? = P × (3K0.5 + 4L0.5) 1/0.2 ? 20L ? 35K
Tariffs lead to
A. the contraction of relatively efficient industries. B. an over allocation of resources to relatively efficient industries. C. an increase in the foreign demand for domestically produced goods. D. an under allocation of resources to relatively inefficient industries.
Which of the following is true in a market economy?
A. Central planners determine answers to the basic economic questions. B. Resources are used efficiently. C. The distribution of wealth is equal. D. Information for production and distribution decisions pass directly to buyers from the government.