If Veronica withdraws $1,500 from her checking account and holds it as currency, then M1 will ________ and M2 will ________
A) increase; decrease
B) increase; not change
C) not change; decrease
D) not change; not change
D
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If 6 workers can wash 42 cars a day and 7 workers can wash 50 cars a day, then the marginal product of the 7th worker equals
A) 7.1 cars a day. B) 7 cars a day. C) 42 cars a day. D) 50 cars a day. E) 8 cars a day.
A monopolist maximizes profit at the quantity where its total revenue curve equals total cost
a. True b. False
Answer the following statements true (T) or false (F)
1. Share draft accounts at credit unions are a type of transaction account. 2. Reserve requirements on non personal time deposits cannot exceed 9 percent. 3. It is possible for the economy to still experience an increase in the money supply when the Fed increases the reserve requirement. 4. Interest rate ceilings were phased out by the Depository Institutions Deregulation and Monetary Control Act of 1980. 5. The Federal Reserve today no longer has control over stock market margins requirements.
A change in autonomous consumption causes a movement along the aggregate expenditure line, while a change in consumption that depends on income causes a shift of the aggregate expenditure line
a. True b. False