During the early years of the Great Depression, the monetary base and M2:
A. moved in opposite directions; the monetary base increased but M2 decreased.
B. both decreased significantly.
C. both increased significantly.
D. moved in opposite directions; M2 increased while the monetary base decreased.
Answer: A
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A rightward shift of the aggregate demand curve leads to
A) an upward movement along the short-run Phillips curve. B) neither a movement along nor a shift in the short-run Phillips curve. C) a downward movement along the short-run Phillips curve. D) a leftward shift of the short-run Phillips curve. E) a rightward shift of the short-run Phillips curve.
What role do households play in capital markets?
What will be an ideal response?
Which of the following is a characteristic of a perfectly competitive seller's demand curve?
A. Price and marginal revenue are equal at all levels of output. B. Average revenue is less than price. C. Its elasticity at all levels of output is 1. D. It is the same as the market demand curve.
Answer the following statements true (T) or false (F)
1) For an open mixed economy, the equilibrium level of GDP is determined where S a + I g + X = T + G. 2) Equal increases in government expenditures and tax collections will leave the equilibrium GDP unchanged. 3) A $10 billion decrease in taxes will increase the equilibrium GDP by more than would a $10 billion increase in government expenditures. 4) A lump-sum tax causes the after-tax consumption schedule to be flatter than the before-tax consumption schedule.