One difference between the assets included in M1 and those added to calculate M2 is that items in M1 are
A. better stores of value than those added to compute M2.
B. more liquid than those added to compute M2.
C. less liquid than those added to compute M2.
D. larger than those added to compute M2.
Answer: B
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Major macroeconomic questions include all of the following EXCEPT:
A. Can inflation be reduced without generating additional unemployment? B. Are free trade agreements beneficial? C. How do monopoly firms set prices and determine quantities to produce? D. What causes slowdowns in productivity growth?
If you lost 20 percent on $100 worth of stock in a 2x margin account, then you would:
A. lose $40. B. gain $40. C. lose $20. D. gain $20.
Assume that the stock of money is determined by the Federal Reserve and does not change when the interest rate changes. This situation means that the
A. supply of money curve is vertical. B. supply of money curve is horizontal. C. supply of money curve is inversely related to the interest rate. D. demand for money curve is directly related to the interest rate.
Refer to the following graph.
Marginal utility is:
A. negative between A and B. B. negative between B and C. C. negative between C and D. D. not negative anywhere along the total utility curve.