If an individual moves money from a demand deposit account to a money market deposit account
A) M1 decreases and M2 stays the same.
B) M1 stays the same and M2 increases.
C) M1 stays the same and M2 stays the same.
D) M1 increases and M2 decreases.
A
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Which of the following correctly ranks the amounts from largest to smallest?
A. total output, output per person, average labor productivity B. output per person, total output, average labor productivity C. total output, average labor productivity, output per person D. average labor productivity, output per person, total output
Scarcity is a result of an unfair distribution of income
a. True b. False Indicate whether the statement is true or false
If purchasing power parity holds, then if the price of a basket of goods in the U.S. rose from $1.000 to $1,200 and the price of the same basket in Poland rose from 6,400 Polish zloty to 8,000 zloty, then
a. the nominal exchange rate would be unchanged and the real exchange rate would appreciate. b. the U.S. dollar would appreciate and the real exchange rate would stay the same. c. the nominal exchange rate would be unchanged and the real exchange rate would depreciate. d. the U.S. dollar would depreciate and the real exchange rate would be unchanged.
Suppose a country's currency is a gold coin. One day, speculators find a large gold mine, which doubles the supply of gold coins in the economy. In the short run:
What will be an ideal response?