Checkable deposits are:
A. included in M1.
B. not included in either Ml or M2.
C. considered to be a near money.
D. also called time deposits.
A. included in M1.
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If the Fed wants to lower the nominal interest rate in the short run, the Fed ________ the growth rate of the quantity of money
A) raises B) lowers C) first lowers and then raises D) does not change E) None of the above answers is correct because the premise of the question is wrong since the Fed cannot affect the nominal interest rate, only the real interest rate.
Assume that as a firm expands its scale of operation, the minimum point of its short-run average total cost curve is unchanged. In this case, we would say that the firm is experiencing diseconomies of scale
Indicate whether the statement is true or false
Refer to Figure 10.3. A positive demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE3 to AE2; a shift from IS2 to IS1 B) a shift from AE2 to AE3; a shift from IS1 to IS2 C) a shift from AE1 to AE2; a movement from point A to point B D) a shift from AE1 to AE3; a movement from point A to point C
The market supply curve of labor is
a. upward sloping b. perfectly inelastic c. upward sloping at first but then bends backward d. downward sloping e. perfectly elastic