M2 consists of M1 plus savings deposits, small time deposits, money market mutual funds, and a few minor categories.
Answer the following statement true (T) or false (F)
True
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Banks responded to disintermediation by
A) supporting the elimination of interest rate regulations, enabling them to better compete for funds. B) opposing the elimination of interest rate regulations, as this would increase their cost of funds. C) demanding that interest rate regulations be imposed on money market mutual funds. D) supporting the elimination of interest rate regulations, as this would reduce their cost of funds.
According to the table shown, when 5 units are produced:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. profits are maximized.
B. profits are positive.
C. the firm is producing less than the profit-maximizing amount.
D. the firm is producing more than the profit-maximizing amount.
The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that
a. all industries will claim that they are infant industries in order to gain protection b. the protected industry will become too efficient and drive out foreign competition c. once in place, it is difficult to remove protection even as the industry matures d. it causes the goods that are produced in the protected industry to have lower prices e. this policy compromises national security if the infant industry produces military goods
When the overall price level decreases, what is the effect on the economy?
a. Purchasers demand a higher quantity of final goods and services.
b. There is a decrease in the quantity of real GDP demanded.
c. Movement occurs along the curve from point A to point B.
d. The aggregate demand curve shifts rightward.