The most commonly quoted monetary aggregate is:
A. public currency.
B. M1 since it is the most liquid.
C. M2 since its movement is most closely related to interest rates and economic growth.
D. money-market mutual fund shares.
Answer: C
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Which goes exclusively to the poor?
A. Medicaid B. Medicare C. Social Security D. Unemployment insurance benefits
Two college students, Mary and Maggie, are spending spring break in Florida. Mary buys a cup of coffee each morning at the local Starbucks rather than from one of the local coffee shops. Maggie claims that Mary is irrational because she never purchases Starbucks coffee at home, and Starbucks coffee costs more than the coffee sold by local shops. An economist would most likely explain Mary's
behavior by suggesting that a. Mary's behavior is rational, but Maggie's behavior is clearly irrational. b. Mary's behavior is clearly irrational, but Maggie's behavior is rational. c. the Starbucks brand name suggests consistent quality. d. the advertising by Starbucks in Florida is more persuasive than the advertising by Starbucks in Mary and Maggie's home town.
Which one of the following is true?
(a) GDPfc = GNPmp; (b) GDE=FD-M; (c) GDP=FD-X; (d) GNP-Dep=NNP=NI.
In the open-economy macroeconomic model, equilibrium in the market for foreign-currency exchange is determined by the equality between the supply of dollars which comes from
a. U.S. national saving and the demand for dollars for U.S. net exports. b. U.S. net capital outflow and the demand for dollars for U.S. net exports. c. domestic investment and the demand for U.S. net exports. d. foreign demand for U.S. goods and services and U.S. demand for foreign goods and services.