Checking accounts are not considered a part of M1 money supply because checks are not legal tender and are usually not accepted as a medium of exchange
Indicate whether the statement is true or false
false
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Tunitra consumes at a point on her budget line where her marginal rate of substitution exceeds the magnitude of the slope of her budget line. As Tunitra moves toward her consumer equilibrium point, she will move to a
A) lower budget line. B) higher budget line. C) lower indifference curve. D) higher indifference curve.
Starting in 1974, the conventional M1 money demand function began to severely ________ the demand for money. Stephen Goldfeld labeled this phenomenon "the case of the missing ________."
A) underpredict; velocity B) overpredict; velocity C) underpredict; money D) overpredict; money
The two components of a consumption curve are induced consumption and
a. permanent consumption b. transitory consumption c. durable consumption d. autonomous consumption e. external consumption
If the multiplier effect did not exist, the aggregate demand curve would:
A. be horizontal. B. be flatter. C. be steeper. D. not exist.