If debit cards become more widely used by consumers and businesses, which of the following is most likely to happen?
a. Currency holdings will remain the same, but the M1 money supply will fall.
b. The amount of currency held by the public will increase.
c. Less money will be held as currency and more money will be held in bank accounts, which will increase the reserves of banks unless the Fed takes offsetting actions.
d. The money supply will be unaffected because debit card expenditures are considered the equivalent of cash.
C
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Veblen goods:
A. are an excellent example of the individual nature of utility. B. are goods which consumers buy to show how wealthy they are. C. are goods that people buy more of when their income decreases. D. are inferior goods.
Over the long run, technological change increases both labor productivity and unemployment rates
a. True b. False Indicate whether the statement is true or false
Which of the following is included in the study of macroeconomics?
a. Salaries of college professors. b. Computer prices. c. Unemployment in the nation. d. Silver prices.
If wealth, income, and standards of living are related in Canada as they are in the United States, then Canadian wealth is
a. more evenly distributed than income b. falling, if measured as per-capita wealth c. a good indicator of its poverty threshold d. less evenly distributed than income e. the reason why the Gini coefficient in Canada is less than 1