John and Jane decide to go on a vacation. As a result, they withdraw $2,500 from their savings account to purchase $2,500 worth of traveler's checks. As a result of these changes,
a. M1 increases by $2,500 and M2 decreases by $2,500.
b. M1 increases by $2,500 and M2 stays the same.
c. M1 and M2 stay the same.
d. M1 decreases by $2,500 and M2 increases by $2,500.
b
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The English word that comes from the Greek word for "one who manages a household" is
a. market. b. consumer. c. producer. d. economy.
The payments to the factors of production are:
A) wages. B) rent. C) rent and interest. D) wages, rent, interest, and profits.
The legal system is an example of:
A. human capital. B. social capital. C. entrepreneurial capital. D. physical capital.
Businesses that fail to account for implicit costs, like the strawberry farmer, Hiroshi Fujishige, who failed to consider the enormous opportunity of selling his property to Disneyland, will
A. Make higher-than-normal profits. B. Make more money when they shut down. C. Have to increase revenues in order to stay in business. D. Go out of business immediately.