Everything else held constant, an increase in the money market fund ratio will result in ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase
B) no change; an increase
C) a decrease; a decrease
D) no change; a decrease
B
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An increase in subway fares in New York City will boost your expenditures on subway rides if
A) the supply of subway rides is elastic. B) the supply of subway rides is inelastic. C) your demand for subway rides is elastic. D) your demand for subway rides is inelastic.
If the public believes that the commitment to a nominal anchor is not credible, the effect of a positive aggregate demand shock is for ________
A) short-run aggregate supply to shift down B) short-run aggregate supply to remain unchanged C) short-run aggregate supply to shift up D) inflation, but not economic activity, to increase
Check clearing is important to company cash management systems, because:
a. Companies can use it to accelerate payables. b. Companies can use it to decelerate receivables. c. Companies can sweep more funds into interest-earning assets by using efficient check-clearing process. d. All of the above. e. None of the above.
Which of the following statements is correct?
a. A minimum wage law will result in less additional unemployment if labor demand is elastic rather than inelastic. b. An in-kind transfer allows a person to use the benefit to purchase whatever they think they need most. c. If a tax policy states that taxes owed equal 1/3 of income less $15,000 . a person earning $25,000 per year would owe $6,666.67 in taxes. d. Welfare reform enacted in 1996 limited the amount of time recipients could stay on welfare.