Which one of the following is part of the M2 definition of the money supply, but not part of M1?
A. Small time deposits such as certificates of deposit.
B. Travelers’ checks.
C. Currency held in banks.
D. Currency in circulation.
Ans: A. Small time deposits such as certificates of deposit.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
If a firm finds that, at its current level of employment, VMP < W, then it has
A) reached maximum profits. B) reached minimum profits. C) not hired enough labor to maximize its profit. D) hired too much labor to maximize its profit.
Explain the reasons for the hidden momentum of population growth and state its implication for population levels
What will be an ideal response?
The Gallatin Plan (1808)
(a) was a plan by the U.S. Senate for a comprehensive system of internal land and water transport in the eastern part of the country to be built by the federal government. (b) was promoted on the basis that only the federal government could command sufficient resources to build a transportation system. (c) was partially implemented but not completed by the federal government because of concerns about the constitutionality of such federal action. (d) was characterized by all of the above.