If the public switches from using cash for most transactions to using checks instead, then all else equal, the money supply will:
A. either increase or decrease.
B. decrease.
C. increase.
D. not change.
Answer: C
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Which of the following is likely to happen when the interest rate falls?
A) The volume of economic activity will reduce. B) The labor demand curve will shift to the left. C) Equilibrium wage rate will fall. D) The labor demand curve will shift to the right.
The birth of the Euro
A) resulted in fixed exchange rates between all EMU member countries. B) resulted in flexible exchange rates between all EMU member countries. C) resulted in crawling-peg exchange rates between all EMU member countries. D) resulted in non currency board exchange rates between all EMU member countries. E) resulted in floating exchange rates between all EMU member countries.
With respect to Figure 7-2, an increase in government spending
a. shifts the IS curve to the left by G(? b/1 ? b). b. shifts the IS curve to the right by G(1 ? b/1 ? b). c. shifts the IS curve to the right by G(1/1 ? b). d. does not shift the IS curve.
Which of the following is an example of a company "offshoring" part of the production of a service?
A. Technicians overseas reading X-rays taken in the United States B. Foreign students studying at American universities C. Scissors for haircuts being produced in China D. An American traveler getting a tattoo while in Germany