Suppose Stan transfers $1,000 from his savings account into his checking account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 remains the same.
B) M1 decreases; M2 increases.
C) Both M1 and M2 increase.
D) Both M1 and M2 decrease.
E) Both M1 and M2 remain the same.
A
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When the exchange rate falls, imports ________ and exports ________
A) increase; decrease B) increase; increase C) decrease; do not change D) decrease; decrease E) decrease; increase
An input's marginal revenue product is given by
a. the input's marginal expense times marginal revenue. b. the input's marginal expense times the input's marginal physical productivity. c. marginal revenue times the number of units employed. d. the input's marginal physical productivity times marginal revenue of the firm's output.
Assume that a Chrysler automobile sells for $15,000 in the United States and that the exchange rate is $1 = €1.3 . For purchasing power parity to hold, the same car should sell in Germany for:
a. €15,000. b. €11,538. c. €19,500. d. €1,538. e. €15,500.
The absence of freedom of entry and exit is key to fact that there is no pressure for economic profit to go to zero under
A. perfect competition and monopolistic competition. B. oligopoly and monopoly. C. monopoly and monopolistic competition. D. monopoly and Perfect competition.