Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?
a. M1 and M2 are both unchanged.
b. M1 falls by $1,000 . and M2 rises by $1,000.
c. M1 is unchanged, and M2 rises by $1,000.
d. M1 falls by $1,000 . and M2 is unchanged.
d
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The interest rate effect on aggregate demand indicates that a(n) ________.
A. decrease in the price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending B. increase in the supply of money will increase interest rates and decrease interest-sensitive consumption and investment spending C. increase in the price level will decrease the demand for money, reduce interest rates, and decrease consumption and investment spending D. decrease in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending
An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus
Indicate whether the statement is true or false
The Ramsey Rule implies that goods be __________ in consumption.
A. unrelated B. equal C. opposite D. moderate
A production possibilities curve illustrates:
A. scarcity. B. market prices. C. consumer preferences. D. the distribution of income.