According to the monetarists, the rise in (M1) velocity in the mid-1990s can be attributed to
a. changes in the type of bank deposits that are available to the public.
b. new legal ceilings imposed on the deposit rates financial institutions are permitted to pay depositors.
c. the phasing out of legal ceilings on the deposit rates financial institutions are allowed to pay depositors.
d. Both a and b
e. Both a and c
E
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If the nation's capital stock increases so that workers become more productive, the
A) demand for labor will increase. B) supply of labor will increase. C) demand for labor will decrease. D) supply of labor will decrease.
Between 1800 and 1940, the U.S. birthrate fell steadily. Factors contributing to this downward trend include:
a. urbanization. b. rising female employment. c. compulsory schooling d. declining infant mortality. e. all of the above.
Which of the following statements best demonstrates the constraints under which individual consumers and society as a whole operate?
a. Only the individual opportunity set (or budget constraint) demonstrates the constraints under which individual consumers and society as a whole operate. b. Only the social production possibilities frontier demonstrates the constraints under which individual consumers and society as a whole operate. c. Neither the individual opportunity set (budget constraint) nor the social production possibilities frontier demonstrates the constraints under which individual consumers and society as a whole operate. d. Both the individual’s opportunity set (and budget constraint) and the social production possibilities frontier show the constraints under which individual consumers and society as a whole operate.
The rate at which banks can borrow excess reserves from other banks is equal to
A. the required reserve ratio. B. the interest rate paid on reserves held with the Fed. C. the discount rate. D. none of these.