The monetary base includes
A. currency, checkable accounts, traveler's checks, small CDs, and money market accounts.
B. currency plus checkable accounts and traveler's checks.
C. just cash held by the public.
D. cash held by banks and by the public plus deposits at the Federal Reserve.
Answer: D
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Refer to the market diagram. Relative to the surplus achieved under perfect competition, how much surplus is lost (deadweight loss) when there is a monopoly?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. E
b. H
c. E + H
d. D + G + E + H
Lack of competition in the United States banking industry can be attributed to
A) the fact that competition does not benefit consumers. B) the fact that branching has eliminated competition. C) recent legislation restricting competition. D) nineteenth-century populist sentiment.
According to the table shown, what happened to the cost of living from 2013 to 2014? The cost of living:
A. increased; consumers became worse off than they would have been if the price level had not changed.
B. decreased; consumers became worse off than they would have been if the price level had not changed.
C. increased; consumers became better off than they would have been if the price level had not changed.
D. decreased; consumers became better off than they would have been if the price level had not changed.
Suppose Congress passes a law that states that the federal government will pay $100 to any American citizen who can pass a (reasonably simple) current political events test. It follows that
A) this raises the benefits of being rationally ignorant. B) this raises the benefits of becoming informed and therefore will lower the degree of rational ignorance in society. C) this raises the costs of being rationally ignorant. D) b and c E) none of the above