Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise.
b. M2 money supply to rise.
c. M2 money multiplier to remain the same.
d. M2 money supply to fall.
.C
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The prevalence of Alzheimer's dementia is very high among residents living in nursing homes. A student concludes that it is likely that living in a nursing home causes Alzheimer's dementia. What is the flaw in the student's reasoning?
A) The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents. B) The student has failed to take into account other causes of Alzheimer's disease. C) The student is drawing a false conclusion; he is confusing cause and effect. D) The student is using an inadequate sample size.
According to the aggregate supply curve, what happens as the price level increases?
(A) Consumers increase their spending. (B) Profits decrease. (C) Real GDP falls. (D) Firms have more of an incentive to increase output.
A bank has $2 million in checkable deposits. In the bank's balance sheet, this would be part of:
A. Assets B. Liabilities C. Capital stock D. Net worth
An increase in fixed costs will lower a firm's
a. total cost. b. output. c. prices. d. profit.