When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1
A) decreases.
B) does not change.
C) increases.
D) changes, but the direction of the change depends on whether the deposit was accepted by a thrift institution or a commercial bank.
E) changes only if Bank of America does not have excess reserves.
B
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In the figure above, the producer surplus is
A) $60,000. B) $100,000. C) $40,000. D) $80,000. E) $50,000.
Suppose there is a rise in the price level, but no change in the money wage rate. As a result, the quantity of labor demanded
A) increases. B) decreases. C) does not change because there is no change in the real wage rate. D) decreases only if the money wage rate also decreases.
Which word or phrase best completes the following sentence? Marginal analysis means evaluating _________ changes from a current situation. a. positive or negative. b. infinite
c. alternating. d. maximum.
Adam Smith believed that the goal of economic activity is to amass wealth in the form of gold, and that this could best be accomplished through government carefully using tariffs and quotas to fashion favorable terms of trade with its trading partners
a. True b. False Indicate whether the statement is true or false