If households in the economy decide to take money out of checking account deposits and put this money into savings accounts, this will initially
A) decrease M1 and decrease M2. B) increase M1 and decrease M2.
C) decrease M1 and not change M2. D) decrease M1 and increase M2.
C
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The average propensity to consume is the
A) percentage of total disposable income consumed. B) ratio of changes in planned consumption to changes in real disposable income. C) rate at which real disposable income changes as planned consumption changes. D) slope of the consumption function.
The term for the Fed's day-to-day technique for controlling the stock of money is called
A) discounting operations. B) interest-rate operations. C) liquidity operations. D) open heart operations. E) none of the above.
When the population increases with no change in labor productivity, employment ________ and potential GDP ________
A) decreases; decreases B) increases; increases C) decreases; increases D) increases; decreases
Answer the following statement(s) true (T) or false (F)
1. China’s acid rain problem is relatively minor because it is among the lowest consumers of coal in the world. 2. Stationary source emissions are controlled primarily through the use of technology-based standards. 3. Emissions limits applicable to new and modified stationary sources are known as New Source Performance Standards (NSPS). 4. Emissions limits used for nonattainment areas are more stringent than those used for PSD areas. 5. Technology-based standards used to control new sources are more lenient than those used to control existing stationary sources.