Answer the following questions true (T) or false (F)
1. The supply of money is easier to control with commodity money than it is with fiat money.
2. Liquidity increases as we move from the M1 to the M2 definition of the money supply.
3. The amount of national income in an economy equals the money supply in an economy.
1. FALSE
2. FALSE
3. FALSE
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Because there are numerous choices for fast food purchases, the price elasticity of demand for Taco Bell food is likely
A) inelastic. B) unitary elastic. C) perfectly inelastic. D) elastic.
Why wasn't everyone else already implementing group responsibility to lend to the poor in the example in the text?
A. Governments of poor countries had regulations against group responsibility. B. The idea was genuinely new. C. It was not profitable. D. It was easy for groups to provide false social security numbers for members that did not exist.
After a price ceiling of $8 is placed on the market in the graph shown, which area represents consumer surplus?
A. A + C
B. A + B
C. A + B + C
D. A + B + C + D + F + G
According to classical economists,
a. full employment means zero unemployment b. as long as markets clear, no government action is needed to ensure full employment c. even if all markets clear, government action is needed to correct labor market imperfections if the economy is to reach full employment d. as long as markets clear and government provides jobs to those who need them, the economy will be at full employment e. even if markets clear, cyclical unemployment will still persist in the long run