M1 does not include cash that is held in ATMs or bank vaults, because ________
A) no one really owns that money
B) that money is included in M2
C) that money earns no interest
D) the right to access that money is counted already as bank deposits
E) none of the above
D
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An easier monetary policy ________ the user cost of capital, which ________ net investment
A) raises, raises B) raises, lowers C) lowers, raises D) lowers, lowers
The natural rate hypothesis implies that the long-run Phillips curve will be:
a. downward-sloping. b. upward-sloping. c. vertical. d. horizontal.
According to the Keynesian view of aggregate supply, an increase in the money supply will:
A. Always cause inflation. B. Cause inflation if the economy is at full employment. C. Cause inflation only if aggregate supply is horizontal. D. Never cause inflation.
Refer to the below table. If the firm's product sells for a constant $2 and the price of the resource is a constant $16, the firm will employ how many units of the resource?
A. 5
B. 4
C. 3
D. 2