At Christmastime, individuals choose to hold more cash and fewer deposits to facilitate their Christmas shopping. This condition will
A) increase the money supply, for people will be spending more money.
B) have no effect on the money supply because people are just exchanging one form of money (deposits) for another form (cash).
C) reduce the money supply because there will be a drain of reserves out of the banks.
D) reduce the money supply, for all that cash is spent on Christmas presents.
C
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Leontief found that
A) U.S. exports are capital intensive relative to U.S. imports. B) U.S. imports are labor intensive relative to U.S. exports. C) U.S. exports are neither labor nor capital intensive. D) None of the above.
Output in the short run is determined by which of the following factors when an economy operates at full employment?
A. demand B. supply C. the price level D. the labor force
What are the five variables that will shift the demand curve?
What will be an ideal response?
Which of the following is a cost associated with recessions and unemployment?
A. worsening of the nation's balance of payments B. increased output in the future C. increased real output D. the psychological harm done to the unemployed